Munich, October 9, 2011
- Prices for rare earths have skyrocketed: worldwide market volumes in 2011 have grown to an estimated EUR 27 billion
- Price developments are hurting profitability or are even threatening the existence of some high-tech companies, especially in the automotive and renewable energy sectors
- China maintains a monopoly in extracting and processing rare earths
- Companies must develop the right strategies to ensure their supplies
"The availability of rare earths at competitive prices is currently playing a key role in production at many technology companies," explains Thomas Rinn, Partner at Roland Berger. "It's no surprise that top management is now focusing on the topic of rare earths. Many companies are facing the challenge of dealing with a resource that is in increasingly short supply and becoming more expensive."