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Thursday, 21 October 2010

Adventures in Rare Metal Supereconomics

Posted on 10:12 by hony
What if China decided, one day, to not sell rare earth metals (in which it basically dominates the world market) to any company that did not have its corporate headquarters in China? In a day, Apple, Motorola, RIM, and a cadre of other cell phone manufacturers would fall to their knees. HTC would be fine.

Southwest Airlines cheap flights, for many years, was partially due to the fact they'd locked in a multi-year gas pricing agreement, and as gas prices surged, they could still get their gas cheap. If I were Apple, or Dell, or Garmin, or anyone really that uses OLED or LCD screen technology or gallium-based electronics...I would be working out a long-term rare earth metal supply agreement with the Chinese government.


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