By Ian London, Vice President of Market Development, Avalon Rare Metals, Inc.

It really doesn't matter what business, technical or news journal you peruse these days; you are bound to come across several articles on rare earths or the technologies that the rare earths make possible. Hybrid and pure electric vehicles are expected to drive the Green Energy Economy.  Newer and larger wind power developments are in the air. Smaller and energy-efficient motors are humming quietly, and personal electronics devices like Blackberries and iPhones are sending a very clear message: there is a new materials and green technology renaissance underway. And, as we know, rare earths and magnets are playing a key role in this rebirth.

These two new sectors in the economy however, will continue to face delicate imbalances in the supply and demand for raw materials for both home-grown technologies and for job creation. This will be especially so in the Western world.

Underlying some of the market dynamics are geopolitical imbalances as the different economies emerge from the economic downturn of 2008/2009. China continues to supply about 97 percent of the world's current demand for rare earths, although there are increasing pressures to satisfy its own domestic demand for products. As for exports, China is aligning its efforts to produce more value-added products, effectively saying "Why export raw materials when we could export magnets?" It is only natural then for China to further ask "Why just magnets? Why not complete motor assemblies or complete automobiles?"...