Bloomberg articles, "Rare Earth Prices Double in Two Weeks as China Seeks to Increase Control" and "BMW Carbon Factory Lets Motor Vehicles Follow Road Bike to Lightness: Cars"

Bloomberg.com
June 2011

Rare Earth Prices Double in Two Weeks as China Seeks to Increase Control

Prices of the rare earths used in lasers and plasma televisions more than doubled in the past two weeks as China tightens control of mining, production and exports, according to market researcher Industrial Minerals.

The cost of dysprosium oxide, used in magnets, lasers and nuclear reactors, has risen to about $1,470 a kilogram from $700 to $740 at the start of the month, Industrial Minerals said in an e-mailed statement. Europium oxide, used in plasma TVs and energy-saving light bulbs, has more than doubled.

China, supplier of 95 percent of the 17 elements known as rare earths, has clamped down on rare-earth mining and cut export quotas, boosting prices and sparking concern among overseas users such as Japan about access to supplies. The government may further reduce export quotas, pushing prices higher, Goldman Sachs & PartnersAustralia Pty said last month.

To read more click here...

BMW Carbon Factory Lets Motor Vehicles Follow Road Bike to Lightness: Cars

Bayerische Motoren Werke AG (BMW) is spending $100 million to gain an edge on German luxury rivals by entering the commodities business.

BMW is building its own carbon fiber factory, the first carmaker to do so, to secure supply of the lightweight material and lower expenses by refining the production process. Even though carbon fiber has cost 20 times as much as steel, BMW is embracing the material to reduce the weight of its electric cars and counteract the added heft of their batteries.

Daimler AG (DAI)’s Mercedes-Benz and Volkswagen AG (VOW)’s Audi have joined BMW’s pursuit of the material, which is 50 percent lighter than steel, as they strive to meet tighter environmental rules. BMW has partnered with SGL Carbon SE (SGL), the only Europe- based producer of the material, to build the plant, prompting VW to buy 9.9 percent of SGL to ensure its own access. The battle has made SGL the world’s most expensive carbon-fiber company.

“The capacity to produce carbon fiber isn’t that big, so manufacturers are looking to secure access,” said Robert Outram, program manager for automotive chemicals with Frost & Sullivan in Oxford, England. “There are not many people who do it well. It’s a long-term strategy play.”

To read more click here...