Rare Earth is a collection of seventeen chemical elements on the periodic table. These elements are abundant in the Earth’s curst, however until recent years it was not economically exploitable because it is not typically dispersed in concentrated forms.
The global demand for Rare Earth elements has been projected to increase at about 9% per year. Currently, China extracts over 95% of the worlds Rare Earth for commercial use. Due to its unique characteristics and vast commercial application the Chinese government has imposed strict exporting regulations. From 2005 to 2008 China reduced the Rare Earth quota by 4-6% per year. In 2009, it was reduced by another 12%. Lastly, in 2010, the export quota was further reduced by 40%. The reduction in export of Rare Earth Elements has caused prices and supply to become unstable.
Taiwan Rare Earth has an exclusive agreement which guarantees an annual export quota and is positioned to bridge the supply shortage outside of China