Why it matters: The price of rare earth metals has gone up in the past 12 months. This development is likely to affect the price of electronics for end users in the coming months. Meanwhile, the US and China blame each other and have no diplomatic solution.
Over the past year, we've had news of a shortage of supplies for everything from capacitors and $1 display driver chips to advanced silicon in phones, tablets, and computer parts. We saw a personal car and a car. The infotainment and driver assistance systems still have to deal with the shortage of shipping containers, even if the tech industry somehow manages to recycle more of them.
The Nikkei Asia Index says the crisis is not over yet. Electronics manufacturers now face a new challenge as the price of rare earth metals has risen in the last year and is expected to rise further in the coming months.
Lithium used in batteries, nuclear power and spacecraft equipment saw the largest increase in prices - 150% compared to September 2020. The second largest increase was observed in holmium in the past 12 months, more than doubling.
Holmium is used to make magnets and special alloys for sensors and actuators. Neodymium and praseodymium are also used to make powerful magnets in loudspeakers, motors, wind turbines, and more. The price of the two metals also rose by more than 73 percent last year.
Some believe that China is responsible for this because the state does not control 55% of global production capacity and less than 85% of rare earth metal refining production. In June, Biden's government condemned the Beijing government's strict export controls as "an odd practice for Chinese customs." and reduce dependence on China for critical raw materials. Ironically, Chinese mining giant Shenghe Resources holds a minority stake in MP Minerals. The American company operates the recently reopened Mountain Pass mine in California - a buffer against volatile prices for rare earth materials from China. jpg "alt =" https://safirsoft.com Rising rare earths prices could drive up electronics prices "> Image credit: Reuters p>
US government seeks to increase rare earths capacity by millions Offer dollar grants to mining companies to expand their operations, but much of the concentrate extracted from the United States - about 50,000 tons per year - has yet to be shipped to China for downstream processing. Dell, Facebook, Logitech and Sennheiser have all seen their gross margins fall below the industry average of 20 % So far, they've managed to absorb the shock, but will soon have to pass the costs on to their customers, who are getting more expensive for everything that has electronics and batteries.
As of this writing, only one consumer-oriented company has done so. Adjust their prices. When it comes to revenue, they raise prices by $10 to $100 depending on which product started this month, and only time will tell if that trend becomes a trend. Give you. Stubborn credit: Peggy the Cat
Rising rare earth metal prices may drive up electronics prices