Opening Statement By Chairman Bart Gordon
I'd like to thank Chairman Miller for calling this hearing. Last September, I saw an article on this issue that raised a number of questions in my mind about whether the Committee and the Congress were doing enough to support American business and American jobs.
Rare earths are an essential component in a wide array of emerging industries.
This is not the first time the Committee has been concerned with the competitive implications of materials such as rare earths. In 1980—30 years ago—this Committee established a national minerals and materials policy. One core element in that legislation was the call to support for "a vigorous, comprehensive and coordinated program of materials research and development."
Unfortunately, over successive administrations, the effort to keep that program going fell apart. Now, it is time to ask whether we need to revive a coordinated effort to level the playing field in rare earths.
In particular, I want to learn if there is a need for increased research and development to help address this Nation’s rare earth shortage, or if we need to re-orient the research we already have underway.
Based on my review of the written submissions, it appears that we could benefit from more research both in basic and applied materials sciences.
Rare earths are not the only materials in which the U.S. is largely or exclusively dependent on foreign sources. According to the U.S. Geological Survey, there are eighteen other minerals and materials where the United States is completely dependent on foreign sources.
Someone needs to be telling us what's going on with those before we read about it in the New York Times. Legislation may be the best way to institutionalize a renewed focus and expanded commitment to identifying shortages and needs before they become a crisis.
Again, Mr. Chairman, I appreciate you holding this hearing and expect a stimulating discussion. I yield back my time.
Opening Statement By Chairman Brad Miller
Welcome to our hearing this afternoon on something most of us have never heard of at all, or promptly forgot after our test on the Periodic Table in high school chemistry. Today we will be discussing rare earth elements, which aren't really all that rare. Rare earth elements are crucial to making the magnets and batteries needed for the energy industry of the 21st Century. With a little of one of these elements you can get a smaller, more powerful magnet, or an aircraft engine that operates at higher temperatures or a fiber-optic cable that can carry your phone call much greater distances.
The United States, not so long ago, was the world leader in producing and exporting rare earths. Today, China is the world’s leader. We're having this hearing in part to recognize that the Chinese have some different ideas about how to get the greatest benefit from this suddenly-valuable commodity beyond simply digging it up and selling it to those who want to use it in their high-tech manufacturing. China appears to view rare earths as one of the incentives they can offer a technology firm scouting for a new plant location. How do we compete in attracting and retaining manufacturing firms that need access to rare earth elements in light of China’s current near monopoly, and their willingness to use their monopoly power to our disadvantage?
The most immediate step would be to get some competition back into the supply of rare earths. One of our witnesses, Mr. Mark Smith, is proposing to do just that. His company owns a mine that could produce many rare earth elements if it were to reopen. He will describe today not only what it will take to restart the mine, but also his intent to augment America's capability to produce the magnets needed for electrical generators in wind turbines. From what he has told us in preparation for the hearing, he's found it hard to get help at making his vision a reality. If we intend to rebuild America's capability to supply its own needs in rare earth materials, if we intend to foster a home-grown capability to make the devices that provide wind energy, we can't succeed unless he and others like him succeed.
Further, are we investing enough in research looking into ways to recover and recycle these materials and looking for alternatives or synthetic options? Are there efficiencies that could be gained in the use of rare earth materials? For example, if you work with rare earths on the nanoscale level, could you get the same improvements in material performance using micrograms where today you need kilograms? There aren't a lot of places where people are currently working to answer these questions even as the answers could go far in helping America compete in the alternative energy technology industries springing up around the globe.
This is not the first time the Committee has wrestled with rare earth and critical materials issues.
Our Committee established a national policy in minerals and materials three decades ago. That 1980 law required a continuing assessment of mineral and materials markets to alert us to looming problems such as supply disruptions, price spikes and the like.
Four years later we followed up by establishing the Critical Materials Council to assure that someone was minding the store. However, you won't find the Critical Materials Council in the White House organization chart today; it disappeared into the National Science and Technology Council in 1993 and high level attention to rare earths, and other materials, fell away as a priority.
While preparing for this hearing, we have learned that the Office of Science and Technology Policy has recently organized a new interagency committee to respond to our rare earth problems. An obvious question arises: if the Critical Materials Council had been maintained might we be in a better position to protect our nation’s interests in a robust rare earths industry? How can we reverse the result of that history of neglect.
The Subcommittee thanks the witnesses for helping us address these issues and I anticipate an interesting discussion later. I now recognize Dr. Broun, our Ranking Member, for his opening remarks.
Witnesses
Panel
0 - Dr. Stephen W. Freiman
President Freiman Consulting, Inc. Member Freiman Consulting, Inc. Member
Download the Witness Testimony
0 - Dr. Karl A Gschneidner, Jr.
Anson Marston Distinguished Professor Department of Materials Science and Engineering Iowa State University Iowa State University
Download the Witness Testimony
0 - Dr. Steven Duclos
Chief Scientist and Manager Material Sustainability General Electric Global Research Material Sustainability General Electric Global Research
Download the Witness Testimony
0 - Mr. Mark Smith
Chief Executive Officer Molycorp Minerals, LLC Molycorp Minerals, LLC
Download the Witness Testimony
0 - Mr. Terence Stewart, Esq.
Managing Partner Stewart and Stewart Stewart and Stewart
Download the Witness Testimony
