From 
EDN:
Electronics industry braces for rare-earth-materials shortages:
"China has started to severely restrict the exports of  rare-earth materials, which often find use in “green”-technology  designs, including hybrid vehicles and energy-efficient lighting, as  well as in the medical, defense, and consumer markets. The country  delivers nearly 100% of the world’s rare-earth materials: 17 metals that  are somewhat hard to refine and that tend to occur in the same ore  deposits (
Table 1). The cutbacks have resulted in shock waves through the electronics industry and could force design changes in the near future.
 
China  set out on a moderate restriction path this year and then announced in  July that it would cut exports by 72% for the remainder of 2010. It  plans an overall export reduction of 30% for next year.
 These cutbacks have increased the price of rare-earth materials an  average of 700%, prompting legislation, which is currently stalled, to  restart US rare-earth-materials production. The Western Hemisphere’s one  rare-earth-materials producer, Colorado-based 
Molycorp Minerals,  issued an initial public offering of stock in July, raising $390  million to restart its California mine and ramp up processing to counter  world shortages.
Part of China’s motivation for reducing  rare-earth-materials exports is its desire to emphasize its industrial  status. China’s leaders want to move away from raw-materials exports and  evolve toward exporting more finished goods.
Production of  rare-earth materials fell off worldwide beginning in the 1980s when low  prices in China made production unfeasible elsewhere in the world. Tom  Valiere, senior vice president and co-founder of 
Design Chain Associates,  says this cutback is a wake-up call for US industry. “We used to lead  the world in the export of rare-earth materials,” he says. “In the last  20 years, we’ve become dependent. The whole thing flew under the radar  until green technology placed demand on rare-earth materials and we  realized they were sole-sourced to China.”
China’s restrictions  this year have been part of a multiyear plan to save most of its supply  for its own industry. “Each year, China has brought down its exports by  X% and never exceeded its quotas,” says Gareth Hatch, co-founder of 
Technology Metals Research. “The reduction the country made in July was a huge reduction over the first half of the year.”
Worldwide  shortages are now occurring. “The world outside China uses a collective  50,000 tons annually,” says Jim Simms, director of public affairs at  Molycorp Minerals. “[China] reduced its exporting in 2010 to about  30,000 tons. Since China supplies about 97% of rare-earth materials, the  world has to depend on what China exports.”
Simms believes that  the demand for the materials will just increase over the coming years.  The company expects to produce 20,000 tons by the end of 2012. “My  BlackBerry only has about 3/10g of rare-earth materials,” he says, but  “a single wind turbine requires about one ton. A car can use about 25  kg.”
Lynas Corp, a rare-earth-materials supply company in Australia, expects to increase rare earths delivery in 2011 to 11,000 tons per year.
Rare-earth materials factsRare-earth  materials include terbium, which finds use in flat-panel TVs and  high-efficiency fluorescent lamps, and neodymium, key to the permanent  magnets in high-efficiency electric motors. Rare-earth materials are not  indeed rare. The series of nonferrous metals is common in the  environment. According to Design Chain Associates, most rare-earth  materials are as common as copper, and even the rarest is more common  than gold.
Part of the market pressure on rare-earth materials  comes from new demand that green technologies has prompted. The market,  including electric- and hybrid-vehicle motors and wind turbines,  requires magnets.
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