With 97% of the earth’s rare earth mineral production concentrated in China, the Chinese government wisely (for them) deciding to cut export quotas and beef up enforcement, and rare earth company stocks soaring, what is a buyer to do? Hopefully something.
My hunch is that there are electronics buyers out there that believe that rare earth is a tomato patch in New York City. Another hunch is that in a year or two, they’ll have heard of it…when everyone is scrambling to secure supply and trying not to get fired.
The rare earth issue is just one example of the need to stay on top of what we are buying, and the world in general. Just dealing with day to day issues with suppliers can leave us just like President Roosevelt’s description of the “muckrakers”…concentrating really hard on one thing and missing the bigger picture. Ok, historical buffs will be all over me for the analogy, but I’m betting I just made Google some money. Your welcome, Larry.
Tags: China, Chinese government, Government of the People's Republic of China, minerals, Procurement, procurement of rare earth minerals, Purchasing, rare earth, Rare earth element, rare earth elements