With ‘green’ technology part of the permanent lexicon of the global economy, we are now hearing more and more about rare earth metals and their relationship to renewable energy sources. A good example of this is the neodymium and lanthanum, used in hybrid cars for the vehicles’ engine magnets and batteries.
Again, this highlights our long-held belief that the only country well-positioned for the impending increase in rare earth metals demand is China, and that not only are they securing rare earth assets in their own country but also around the world (especially in Canada). There are some ways to play rare earth metals in the Canadian equity markets, namely Avalon Rare Metals (TSX:AVL) and Commerce Resources (TSX:CCE.V) (not yet in production but has enormous blue sky potential for tantalum and niobium); as the Chinese move to secure more global resources we fully expect more companies with rare earth potential to focus on these resources. Please contact us for more information on the rare earth space if you have any questions.
