Thursday, September 3, 2009

Profit from Looming Shortage of Rare Earth Elements needed for Hybrids and Green Technology

The world is moving more towards hybrids and future Clean and Green Technology such as wind turbines.

Honda and Toyota are dedicated to hitting and ramping their hybrid targets.

But all this demand will cause a shortage in elements needed by hybrids, wind turbines, and future technology.

According to a Reuters Article (By Steve Gorman), Hybrid cars are gobbling rare metals such as Lanthanum, Neodymium, Terbium and Dysprosium.

There will be a shortage in Rare Earth Elements.

At the moment, China produces most of the world's Rare Earth Materials, and as of 2008, the Resource Investor says "China has recently, [...], reduced its exports of rare earth metals to a total below that of the current demand just by Japan. In addition China has raised the export taxes on rare earth metals effectively raising the price of those metals directly to those who can still obtain them from China."

So is there a stock investing play on these Rare Earth Elements (REE), outside of China?

According to the Resource Investor, Six Companies in this area are:

Australia

  1. Lynas Corporation Ltd (LYC.AX or LYSCF.pk)
  2. Arafura Resources Limited (ARU.AX or ARAFF.pk)

Canada

  1. Great Western Minerals Group LTD (GWG.V or GWMGF.pk)
  2. Avalon Ventures Ltd (AVL.TO or AVARF.pk)

United States

  1. Chevron Mining Inc. (CVX)
  2. Thorium Energy, Inc.


Many of these stocks are international stocks and it may be difficult to find research materials. Do research these stocks (and other related stocks), well.

Disclosure: Author has a small position in AVARF.pk.

No comments: