Wednesday, June 2, 2010

Supply Chain Report

See the repost from Industry week..

The Government Accountability Office (GAO), on April 14, issued a report that warns of the impending rare earths crisis, especially as it relates to homeland security and the national defense.

The report confirms:

+ That while rare earth deposits are geographically diverse, the United States relies on Chinese sources for finished rare earth materials

+ That while the United States once dominated all stages of the rare earth supply chain, most current processing is performed in China, giving it dominance in worldwide supply and pricing.

+ The rebuilding of a competitive domestic supply chain could take up to 15 years and will require significant capital investment and new technology development.

The Department of Defense is currently evaluating the dependence of multiple defense systems and components on rare earth materials provided by lower tier foreign suppliers. These defense systems and components will continue to rely on these foreign sources based on their life cycles and lack of effective substitutes. See more...

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