Last year, the global consumption of 137 thousand tons of rare earth LED will be challenged by rare earth prices

Internationally renowned strategy consulting firms Roland Begg 27 release of rare earth report pointed out that the current rare earth prices tend to smooth, but still high. Enterprises must take the right measures to ensure their future competitiveness.

The report pointed out that electric vehicles and wind motor magnet suppliers, LED lamp manufacturers, automotive batteries and catalytic exhaust purifier suppliers in particular will be the challenge of rare earth prices.

Roland Begg partner, said Thomas Ryan, for many companies, the rapid rise in the price of rare earth has threatened the profitability of enterprises and the survival of some enterprises. Even though the price of rare earths has fallen in 2011, it is still one of the top priorities for the company, as supplies remain tight, especially for heavy rare earths. Enterprises must take the right measures to ensure their future competitiveness.

The report shows that companies are taking a series of different measures to deal with high prices. More than 90% of the respondents are trying to ensure their supply chain, or make a new agreement with existing suppliers, or find another supplier; 84% of the respondents are trying to reduce the amount of rare earth, or the use of other materials, or to improve the efficiency in the use of rare earth; more than half of the respondents will increase the cost of transfer to the customer.

Ryan said that more and more companies are looking for other countermeasures, such as cooperation with other enterprises. Among them, some companies consider moving their production base to China, because China as the main production of rare earth, rare earth prices are correspondingly lower.

The report pointed out that the global industry consumes about 137 thousand tons of Rare Earth last year, mainly for the production of high-tech products, such as motor permanent magnet, permanent magnet, electric vehicle L E D lamp, automobile catalytic converters and battery etc..