Rare earths are a group of 17 metallic elements that have similar chemical structures with unique properties.  This report will provide an updated review of the most important advances in rare earth technology and production, a detailed overview of the current market, and an objective analysis of prospects for future growth.

Specifically, the major objectives of this study are:

• Provide an updated review of rare earth technology, focusing on materials, sources, and applications
• Highlight new technological developments during the past 3 years as they relate to rare earths
• Review existing fields of application for rare earths and investigate emerging applications
• Supply an updated worldwide overview of resources and rare earth production
• Describe the market evolution since 2009 and estimate 2011 global markets by application and rare earth element, with growth forecasts through 2016 for each market segment
• Identify important technological and market trends within each market segment
• Provide an updated review of current producers of rare earth materials and other relevant industry players
• Determine trends in U.S. patents issued during the past 2 years.

REASONS FOR DOING THIS STUDY

The first rare earths were discovered in the late 1700s, although commercial applications for these materials remained limited until the 1960s. During the last 50 years, due to the ongoing development of new applications, utilization of rare earths has steadily increased. Technologically advanced devices used in automobile, defense, metallurgy, electronics and optoelectronics, chemical, energy, and other fields owe some of their outstanding properties to the presence of rare earths.

In 2009, global demand for rare earths reached nearly 112,000 metric tons, with no meaningful slow-down in demand expected.

Beginning in the mid-1980s, China surpassed the United States as the leading supplier of rare earths. With very large reserves of rare earths, China’s overwhelming price advantage through economies of scale made most mining operations in other parts of the world unprofitable, strengthening China’s position as the leading producer of these elements (China currently accounts for over 90% of global rare earths production).

In recent years, China has adopted various regulations to control the mining and export of rare earths and has increased enforcement efforts to better protect the environment and safeguard supplies for its growing domestic market. As a result, China has reduced export quotas for rare earths, causing worldwide shortages of these materials and, consequently, rapidly rising prices.

The principal reason for doing this study is to provide an updated and comprehensive assessment of the rare earth industry, particularly as it relates to the evaluation of resources, the status of mining projects worldwide, current and future pricing of rare earths, alternative sources, and growth in demand for products containing these materials.

There is also a need to evaluate the current status and future trends of the rare earth industry from a global standpoint. As use of these materials expands, information on regional production, sales, and types of suppliers becomes more valuable.

An equally important reason for undertaking this study is to provide technical insights regarding rare earth production by:

•     Illustrating the latest technological developments.
•     Supplying a review of current and emerging applications.
•     Identifying supply and demand for the 17 elements.
•     Identifying current technical issues.
•     Providing a detailed patent analysis.

This information can assist companies in finding alternative sources for rare earths and identifying opportunities for process and productivity improvements, resulting in a positive impact on future market growth.

REPORT HIGHLIGHTS

• The global market for rare earths increased from 111.5 thousand metric tons of equivalent rare earth oxides (REO) in 2009 to 141.3 thousand metric tons in 2010, and is estimated to reach 158.2 thousand metric tons by the end of 2011. Consequently, the total market for rare earths is forecast to grow at a CAGR of 10.3% through 2016, leading to the consumption of nearly 258 billion tons of REO in 2016.
• The mechanical/metallurgical sector is estimated to account for 32.1% of total REO consumption in 2011. This sector was 44.8 thousand metric tons in 2010 and is expected to reach 51 thousand metric tons by the end of 2011. We expect this market to grow to 77 billion tons by 2016 increasing at a CAGR of 8.6%.
• The energy segment is the fastest growing segment of the global rare earths market. This segment has grown from 23 thousand metric tons in 2010 to 27.3 thousand metric tons in 2011. By 2016 the energy segment will reach 62 thousand metric tons increasing at a CAGR of 17.8%.

TABLE OF CONTENTS

CHAPTER ONE: INTRODUCTION 
    STUDY GOALS AND OBJECTIVES   1
    REASONS FOR DOING THIS STUDY   1-2
    INTENDED AUDIENCE 3
    SCOPE OF REPORT  3-4
    METHODOLOGY AND INFORMATION SOURCES  5
    RELATED RESEARCH STUDIES   6
    ANALYST CREDENTIALS  7
    DISCLAIMER   8

CHAPTER TWO: EXECUTIVE SUMMARY 
    EXECUTIVE SUMMARY   9
   SUMMARY TABLE GLOBAL MARKET FOR RARE EARTHS,
     THROUGH 2016 (METRIC TONS -- REO EQUIVALENT)   10
   SUMMARY FIGURE GLOBAL MARKET FOR RARE EARTHS, 2009­
     2016 (METRIC TONS -- REO EQUIVALENT)   11

CHAPTER THREE: OVERVIEW 
    INTRODUCTION   12
   FIGURE 1 RARE EARTHS IN THE PERIODIC TABLE  13
   TABLE 1 LANTHANOIDS  13
   TABLE 1 (CONTINUED)   14
   TABLE 2 TYPICAL PROPERTIES OF LANTHANOIDS  14
   TABLE 3 SCANDIUM AND YTTRIUM 15
         MILESTONES IN THE HISTORY OF RARE EARTHS AND RECENT
           EVENTS   15
   TABLE 4 RARE EARTHS -- TECHNOLOGICAL AND COMMERCIAL
      MILESTONES 15
   TABLE 4 (CONTINUED)   16
   TABLE 5 RARE EARTHS DISCOVERY  16
   FIGURE 2 RARE EARTHS -- WORLDWIDE PATENT APPLICATIONS
      AND PATENTS ISSUED, 1951­2010  17
   FIGURE 2 (CONTINUED)   18
         CURRENT AND EMERGING APPLICATIONS FOR RARE EARTHS  19
             METALLURGICAL/ MECHANICAL  19
   TABLE 6 RARE EARTH APPLICATIONS IN THE METALLURGICAL
     AND MECHANICAL SECTOR, 2011   19
   TABLE 6 (CONTINUED)   20
                  GLASS/CERAMICS   20
   TABLE 7 RARE EARTH APPLICATIONS IN THE GLASS/CERAMIC
     SECTOR, 2011   20
   TABLE 7 (CONTINUED)   21
                  ELECTRONICS, OPTICS, AND OPTOELECTRONICS   21
   TABLE 8 RARE EARTH APPLICATIONS IN ELECTRONICS, OPTICS,
     AND OPTOELECTRONICS, 2011  22
   TABLE 8 (CONTINUED)   23
                  CHEMICAL  23
   TABLE 9 RARE EARTH APPLICATIONS IN THE CHEMICAL SECTOR,
     2011  23
   TABLE 9 (CONTINUED)  24
                  ENERGY   24
   TABLE 10 RARE EARTH APPLICATIONS IN THE ENERGY SECTOR,
     2011  24
   TABLE 10 (CONTINUED)   25
                  LIFE SCIENCES  25
   TABLE 11 RARE EARTH APPLICATIONS IN THE LIFE SCIENCES
     SECTOR, 2011   25
                  SENSORS AND INSTRUMENTATION   26
   TABLE 12 RARE EARTH APPLICATIONS IN THE SENSORS AND
     INSTRUMENTATION SECTOR, 2011  26
                  CONSUMER   26
                      Established Applications   26
   TABLE 13 RARE EARTH APPLICATIONS IN THE CONSUMER
     SECTOR, 2011   27
                  OTHERS   27
   TABLE 14 OTHER RARE EARTH APPLICATIONS, 2011  27

CHAPTER FOUR: RARE EARTH PRODUCTION TECHNOLOGY  
    INTRODUCTION   28
    RARE ELEMENTS PROCESSING 28
   TABLE 15 PROCESSING STEPS IN THE RARE EARTH INDUSTRY  28
                  MINING  29
                       Crustal Abundance and Deposit Types  29
   TABLE 16 RARE EARTHS CRUSTAL ABUNDANCE 29
                            Rare Earth Minerals   30
   TABLE 17 TYPICAL RARE EARTH CONTENT IN VARIOUS COMMON
     RARE EARTH MINERALS (REO %)   30
   TABLE 17 (CONTINUED)   31
   TABLE 18 TYPICAL ION ADSORPTION CLAY, LATERITE ORE
     COMPOSITIONS (% OF TOTAL REO)  31
   TABLE 18 (CONTINUED)   32
   TABLE 19 TYPICAL RARE EARTH CONTENT IN OTHER RARE
     EARTH MINERALS (REO %)  32-37
   TABLE 20 OCCURRENCE OF MINERALS CONTAINING RARE
     EARTHS WORLDWIDE  37-38
             MINERAL PROCESSING   39
             RECENT PROCESS IMPROVEMENTS, 2009 TO PRESENT  40
                  Highly Efficient Separation of Rare Earth Elements  40
                  Environmentally Friendly Methods for Rare Earths
                     Separation  40
                  Rare Earth Recycling Process for Rechargeable Batteries  41
         LATEST TECHNOLOGICAL DEVELOPMENTS, 2009 TO PRESENT   41
             NANOPARTICLES FOR SOOT REDUCTION  41
             FLUORESCENT LABELING COMPOUND  42
             SINGLE CRYSTAL FOR PRODUCING A HIGH-
                TEMPERATURE PIEZOELECTRIC SENSOR  42
             RARE EARTH NANORODS  43
             RARE EARTH­ACTIVATED ALUMINUM NITRIDE POWDER
                FOR WHITE LEDS   44
             PYROCATALYTIC COATINGS FOR HEATING DEVICES   44
         RARE EARTH GLOBAL PRODUCTION  45
             SUMMARY OF GLOBAL PRODUCTION  45
   TABLE 21 RARE EARTHS PRODUCTION BY COUNTRY, 2006­2011
     (METRIC TONS)  46
                  INCREASING GAP BETWEEN PRODUCTION AND DEMAND  46
   TABLE 22 RARE EARTHS PRODUCTION AND EXPORT IN CHINA,
     2007­2011 (METRIC TONS)   47

CHAPTER FIVE: GEOGRAPHICAL DISTRIBUTION OF RARE EARTH RESOURCES
    INTRODUCTION   48
    NORTH AMERICA   49
         UNITED STATES  49
                Mountain Pass   49
   TABLE 23 MOUNTAIN PASS, CALIFORNIA -- TYPICAL ORE
     COMPOSITION (PERCENT OF TOTAL REO)   50
                           Iron Hill 50
   TABLE 24 IRON HILL, COLORADO -- CARBONATITE ORE
     COMPOSITION (PERCENT OF TOTAL REO)   51
   TABLE 25 IRON HILL, COLORADO -- PIROXENITE ORE
     COMPOSITION (PERCENT OF TOTAL REO)   52
                           Elk Creek   52
   TABLE 26 ELK CREEK, NEBRASKA -- TYPICAL ORE COMPOSITION
     (PERCENT OF TOTAL REO)   53
                       Round Top Mountain   53
TABLE 27 ROUND TOP MOUNTAIN, TEXAS -- TYPICAL ORE
  COMPOSITION (PERCENT OF TOTAL REO)   54
                       Bear Lodge   54
TABLE 28 BEAR LODGE, WYOMING -- TYPICAL ORE COMPOSITION
  (PERCENT OF TOTAL REO)   55
                       Bokan Mountain  55
TABLE 29 BOKAN MOUNTAIN, ALASKA -- DOTSON ORE
  COMPOSITION (PERCENT OF TOTAL REO)   56
                       Other Resources   56
                       Summary of Rare Earths Resources in the U S   57
TABLE 30 U S  RARE EARTH RESOURCES, 2011  57
TABLE 30 (CONTINUED)   58
              CANADA   58
                  Thor Lake   58
TABLE 31 THOR LAKE, CANADA -- NECHALACHO ORE
  COMPOSITION (PERCENT OF TOTAL REO)   59
                       Eldor   59
TABLE 32 ELDOR, CANADA -- ASHRAM ZONE ORE COMPOSITION
  (PERCENT OF TOTAL REO)   60
                       Wicheeda  60
                       Strange Lake 61
TABLE 33 STRANGE LAKE, CANADA -- B-ZONE ORE COMPOSITION
  (PERCENT OF TOTAL REO)   62
                       Misery Lake   62
                       Oka   62
TABLE 34 OKA, CANADA -- TYPICAL ORE COMPOSITION
  (PERCENT OF TOTAL REO)   63
                       Hoidas Lake   64
TABLE 35 HOIDAS LAKE, CANADA -- TYPICAL RARE EARTH ORE
  COMPOSITION (PERCENT OF TOTAL REO)   64
                       Elliot Lake 65
TABLE 36 ELLIOT LAKE, CANADA -- ECO RIDGE RARE EARTH ORE
  COMPOSITION (PERCENT OF TOTAL REO)   65
                       Other Resources   66
                             Kipawa  66
                             Eden Lake   66
                             Red Wine   67
                             Lancer  67
                       Summary of Rare Earths Resources in Canada   67
TABLE 37 CANADA RARE EARTH RESOURCES, 2011   67
     SOUTH AMERICA   68
         BRAZIL   68
              Monazite Placers 68
                       Other Resources   68
                             Morro dos Seis Lagos  68
                             Araxá   68
TABLE 38 ARAXÁ, BRAZIL -- TYPICAL RARE EARTH ORE
  COMPOSITION (PERCENT OF TOTAL REO)   69
                                 Catalão  70
TABLE 39 CATALÃO, BRAZIL -- TYPICAL RARE EARTH ORE
  COMPOSITION (PERCENT OF TOTAL REO)   70
                                       · REE in Fertilizers 71
                                 Tapira  71
TABLE 40 TAPIRA, BRAZIL -- TYPICAL RARE EARTH ORE
  COMPOSITION (PERCENT OF TOTAL REO)   72
                                 Salitre  72
                                 Pitinga   72
                                 Morro do Ferro  73
TABLE 41 MORRO DO FERRO, BRAZIL ­ TYPICAL RARE EARTH ORE
  COMPOSITION (PERCENT OF TOTAL REO)   73
                                 Mato Preto   74
TABLE 42 MATO PRETO, BRAZIL -- TYPICAL RARE EARTH ORE
  COMPOSITION (PERCENT OF TOTAL REO)   74
                       Summary of Rare Earths Resources in Brazil   74
TABLE 43 BRAZIL RARE EARTH RESOURCES, 2011   75
        ARGENTINA  75
                Rodeo de Los Molles  75
                Other Resources   75
    EUROPE 75
        SWEDEN  76
                Norra Kärr   76
TABLE 44 NORRA KÄRR, SWEDEN -- TYPICAL RARE EARTH ORE
  COMPOSITION (PERCENT OF TOTAL REO)   76
                  Other Resources   77
             FINLAND   77
                  Otanmäki   77
TABLE 45 KATAJAKANGAS, FINLAND -- TYPICAL RARE EARTH
  ORE COMPOSITION (PERCENT OF TOTAL REO)  78
                 Korsnäs  78
                 Kaatiala 79
                 Other Resources   79
             NORWAY  79
                 Fen 79
             GREENLAND  79
                 Kvanefjeld  79
TABLE 46 KVANEFJELD, GREENLAND -- TYPICAL RARE EARTH
  ORE COMPOSITION (PERCENT OF TOTAL REO)  80
                         Motzfeldt  80
TABLE 47 MOTZFELDT, GREENLAND -- TYPICAL RARE EARTH
  ORE COMPOSITION (PERCENT OF TOTAL REO)  81
                   Sarfartoq  81
     AFRICA   82
          SOUTH AFRICA  82
                   Zandkopsdrift   82
TABLE 48 ZANDKOPSDRIFT, SOUTH AFRICA -- TYPICAL RARE
  EARTH ORE COMPOSITIONS (PERCENT OF TOTAL REO)   82
                         Pilanesberg  83
TABLE 49 PILANESBERG, SOUTH AFRICA -- TYPICAL RARE EARTH
  ORE COMPOSITIONS (PERCENT OF TOTAL REO)  83
                         Phalaborwa  84
                         Steenkampskraal   84
TABLE 50 STEENKAMPSKRAAL, SOUTH AFRICA -- TYPICAL RARE
  EARTH ORE COMPOSITIONS (PERCENT OF TOTAL REO)   85
                         Monazite Sands   85
                         Summary of Rare Earths Resources in South Africa   86
TABLE 51 SOUTH AFRICA RARE EARTH RESOURCES, 2011  86
         OTHER STATES  86
             Other States (Continued)  87
     COMMONWEALTH OF INDEPENDENT STATES  88
         RUSSIA  88
             Lovozero   88
TABLE 52 LOVOZERO, RUSSIA -- TYPICAL RARE EARTH ORE
  COMPOSITIONS (PERCENT OF TOTAL REO)   88
TABLE 52 (CONTINUED)   89
                         Khibina  89
TABLE 53 KHIBINA, RUSSIA -- TYPICAL RARE EARTH ORE
  COMPOSITION (PERCENT OF TOTAL REO)   90
                         Tomtor  90
                         Eastern Siberia and Far East of Russia   90
                         Summary of Rare Earths Resources in Russia  91
TABLE 54 RUSSIA RARE EARTH RESOURCES, 2011   91
               KYRGYZSTAN   91
                   Aktyuz  91
TABLE 55 KUTESSAI II, KYRGYZSTAN -- TYPICAL RARE EARTH
  ORE COMPOSITION (PERCENT OF TOTAL REO)  92
                         Other Resources   93
                         Summary of Rare Earth Resources in Kyrgyzstan  93
TABLE 56 KYRGYZSTAN RARE EARTH RESOURCES, 2011 93
           KAZAKHSTAN   93
     ASIA  94
           INDIA   94
                        Monazite Placers 94
TABLE 57 INDIA -- TYPICAL MONAZITE ORE COMPOSITION
  (PERCENT OF TOTAL REO)   95
              CHINA  95
                  Bayan Obo  95
TABLE 58 BAYAN OBO, INNER MONGOLIA, CHINA -- TYPICAL
  BASTNÄSITE ORE COMPOSITION (PERCENT OF TOTAL REO)  96
                        Weishan 96
                        Maoniuping  96
TABLE 59 MAONIUPING, SICHUAN, CHINA -- TYPICAL ORE
  COMPOSITION (PERCENT OF TOTAL REO)   97
                        Ion-adsorption Clays   97
                        Other Resources   97
TABLE 60 SOUTHERN CHINA -- TYPICAL MONAZITE ORE
  COMPOSITION (% OF TOTAL REO)  98
                        Summary of Rare Earths Resources in China   98
TABLE 61 CHINA RARE EARTH RESOURCES, 2011  98
              VIETNAM   99
                   Nam Xe  99
                   Dong Pao  99
                   Monazite Placers 99
                   Summary of Rare Earths Resources in Vietnam   99
TABLE 62 VIETNAM RARE EARTH RESOURCES, 2011   100
         OTHER ASIAN RESOURCES  100
     OCEANIA  101
         AUSTRALIA   101
                 Olympic Dam   101
                 Mount Weld 101
TABLE 63 MT  WELD, AUSTRALIA -- ORE COMPOSITION (PERCENT
  OF TOTAL REO)  102
                        Nolans Bore 102
TABLE 64 NOLANS BORE, AUSTRALIA -- TYPICAL RARE EARTH
  ORE COMPOSITIONS (PERCENT OF TOTAL REO)  103
                        Toongi   103
TABLE 65 TOONGI, AUSTRALIA -- TYPICAL RARE EARTH ORE
  COMPOSITIONS (PERCENT OF TOTAL REO)   104
                        Brockman   105
TABLE 66 BROCKMAN, AUSTRALIA -- TYPICAL ORE COMPOSITION
  (PERCENT OF TOTAL REO)   105
                        Yangibana  105
TABLE 67 YANGIBANA, AUSTRALIA -- TYPICAL RARE EARTH ORE
  COMPOSITION (PERCENT OF TOTAL REO)   106
                        Cummins Range  106
   TABLE 68 CUMMINS RANGE, AUSTRALIA -- TYPICAL RARE EARTH
     ORE COMPOSITIONS (PERCENT OF TOTAL REO)  107
                            Other Resources   107
                            Summary of Rare Earths Resources in Australia  108
   TABLE 69 AUSTRALIA RARE EARTH RESOURCES, 2011   108
   TABLE 69 (CONTINUED)   109
        SUMMARY OF WORLD RESERVES OF RARE EARTHS  109
   TABLE 70 GLOBAL RARE EARTH RESERVES, 2011 (METRIC TONS--
      REO EQUIVALENT)   110
   FIGURE 3 RARE EARTH RESERVES BY COUNTRY, 2011 (%)   111
   TABLE 71 HREE-RICH DEPOSITS, 2011   112
        STATUS REPORT OF MOST IMPORTANT PROJECTS  113
   TABLE 72 STATUS REPORT OF VARIOUS PROJECTS WORLDWIDE,
     2011  113
   TABLE 72 (CONTINUED)  114-116
        GLOBAL PRODUCTION FORECAST  117
            PRODUCTION FORECAST BY COUNTRY  117
   TABLE 73 RARE EARTHS PRODUCTION BY COUNTRY, 2011­2016
      (METRIC TONS)  117
   FIGURE 4 RARE EARTHS: GLOBAL PRODUCTION SHARE BY
      COUNTRY, 2016 (%) 118
                  PRODUCTION FORECAST BY ELEMENT  119
   TABLE 74 RARE EARTH PRODUCTION BY ELEMENT, 2016 (METRIC
     TONS)   119

CHAPTER SIX: RARE EARTH PRICES 
    HISTORICAL PRICES OF BASIC RARE EARTH OXIDES  120
         EARLY 1990S TO 2003  120
         2003 TO 2009 120
   FIGURE 5 PRICES FOR THE MAJOR RARE EARTH OXIDES, 1992­
      2003, 99% PURITY CIF U S  (U S  $)   121
   FIGURE 6 PRICES FOR THE MAJOR RARE EARTH OXIDES, 99%
      PURITY FOB CHINA, 2003­2009 ($ U S,)  122
        RECENT PRICES   122
   TABLE 75 RARE EARTHS AVERAGE UNIT PRICES, 99% PURITY,
     FOB, THROUGH 2011 ($ US/KG)  123
        VALUE COMPARISON OF DIFFERENT ORES   123
   TABLE 76 VALUE OF ONE KILOGRAM OF REO FOR VARIOUS ORES
     BASED ON 2011 PRICES ($/KG)   124
   TABLE 76 (CONTINUED)  125
   TABLE 77 REO RESOURCE VALUES FOR VARIOUS ORES, 2011 ($
     BILLIONS)   125
   TABLE 77 (CONTINUED)   126
   TABLE 78 REO RESOURCE VALUES BY REGION, 2011 ($ BILLIONS)  127
   TABLE 78 (CONTINUED)   128
   FIGURE 7 VALUE OF RARE EARTH RESOURCES BY REGION, 2011
      (%)   129
         FUTURE PRICE TRENDS  129
             CHINA'S PRODUCTION AND EXPORT POLICIES  130
             RARE EARTH RECYCLING   130
             MANUFACTURING RELOCATION  130
             DEVELOPMENT OF ALTERNATIVE PRODUCTS 131
             REE DEPOSIT DEVELOPMENT   131
             SUPPLY VERSUS DEMAND  132
   TABLE 79 FORECAST -- RARE EARTHS AVERAGE UNIT PRICES,
     99% PURITY, FOB, THROUGH 2016 (US$/KG)   133

CHAPTER SEVEN: GLOBAL MARKET
    ANALYSIS OUTLINE  134
    GLOBAL MARKET SUMMARY  134
         MARKET SEGMENTATION BY INDUSTRY 134
              Market Segmentation   (Continued)  135
   TABLE 80 GLOBAL DEMAND FOR RARE EARTHS BY INDUSTRY,
      THROUGH 2016 (METRIC TONS)  136
   FIGURE 8 GLOBAL DEMAND FOR RARE EARTHS BY INDUSTRY,
      2009­2016 (METRIC TONS)   137
   FIGURE 9 RARE EARTHS CONSUMPTION SHARE BY INDUSTRY,
      2011 AND 2016 (%)  138
   FIGURE 9 (CONTINUED)   139
   TABLE 81 GLOBAL MARKET FOR RARE EARTHS BY INDUSTRY,
      THROUGH 2016 ($ MILLIONS)   140
                   MARKET SEGMENTATION BY ELEMENT  140
   TABLE 82 GLOBAL RARE EARTH CONSUMPTION BY ELEMENT,
      THROUGH 2016 (METRIC TONS REO) 141
   FIGURE 10 RARE EARTHS: MARKET SHARE BY ELEMENT, 2011
      AND 2016 (%)   141
   FIGURE 10 (CONTINUED)  142
         METALLURGICAL/MECHANICAL SECTOR   142
             PERMANENT MAGNETS  143
                 Types  143
   TABLE 83 MAIN TYPES OF PERMANENT MAGNETS, 2011  143
                             Applications   143
   TABLE 84 CURRENT APPLICATIONS OF PERMANENT MAGNETS,
     2011  144
   TABLE 85 CURRENT RARE EARTH MAGNET APPLICATIONS, 2011  145
                             Current Market Summary  145
   TABLE 86 PERMANENT MAGNETS: GLOBAL PRODUCTION BY
     TYPE, THROUGH 2011 (METRIC TONS)  146
FIGURE 11 PERMANENT MAGNETS: PRODUCTION SHARE BY
   TYPE, 2011 (%)  146
FIGURE 11 (CONTINUED)  147
                                   Consumption and Revenues of Rare Earths by
                                     Magnet Type  147
TABLE 87 RARE EARTHS FOR PERMANENT MAGNETS: GLOBAL
  CONSUMPTION BY MAGNET TYPE, THROUGH 2011 (METRIC
  TONS REO)  147
TABLE 88 RARE EARTHS FOR PERMANENT MAGNETS: GLOBAL
  REVENUES BY MAGNET TYPE, THROUGH 2011 ($ MILLIONS)  148
                                   Consumption of Rare Earths by Element  148
TABLE 89 RARE EARTHS FOR PERMANENT MAGNETS: GLOBAL
   CONSUMPTION BY ELEMENT, THROUGH 2011 (METRIC TONS
   REO)   148
FIGURE 12 RARE EARTHS FOR PERMANENT MAGNETS:
   CONSUMPTION SHARE BY ELEMENT, 2011 (%)  149
                         Market Growth Trends 149
                              Electric and Hybrid Vehicles  149
TABLE 90 FORECAST -- ELECTRIC AND HYBRID VEHICLES:
  GLOBAL REVENUES, THROUGH 2016 ($ BILLIONS)   150
                              Wind Turbines  150
                              Electronics   150
                         Market Forecast  151
TABLE 91 FORECAST -- PERMANENT MAGNETS: GLOBAL
   PRODUCTION BY TYPE, THROUGH 2016 (METRIC TONS)  151
FIGURE 13 FORECAST -- PERMANENT MAGNETS: PRODUCTION
   SHARE BY TYPE, 2016 (%)  152
                                   Consumption and Revenues of Rare Earths by
                                     Magnet Type  152
TABLE 92 FORECAST -- RARE EARTHS FOR PERMANENT
  MAGNETS: GLOBAL CONSUMPTION BY MAGNET TYPE,
  THROUGH 2016 (METRIC TONS REO) 153
TABLE 93 FORECAST -- RARE EARTHS FOR PERMANENT
  MAGNETS: GLOBAL REVENUES BY MAGNET TYPE, 2011
  THROUGH 2016 ($ MILLIONS)   153
                                   Consumption of Rare Earths by Element  153
TABLE 94 FORECAST -- RARE EARTHS FOR PERMANENT
   MAGNETS: GLOBAL CONSUMPTION BY ELEMENT, THROUGH
   2016 (METRIC TONS REO)  154
FIGURE 14 FORECAST -- RARE EARTHS FOR PERMANENT
   MAGNETS: CONSUMPTION SHARE BY ELEMENT, 2016 (%)   154
FIGURE 14 (CONTINUED)  155
               METALLURGICAL ALLOYS  155
                   Rare Earth Elements for Metallurgy  155
TABLE 95 RARE EARTH ELEMENTS FOR METALLURGY, 2011  155
TABLE 95 (CONTINUED)   156
                         Current Market Summary  156
TABLE 96 HIGH-PERFORMANCE ALLOYS: GLOBAL CONSUMPTION,
  THROUGH 2011 (METRIC TONS)  157
TABLE 97 RARE EARTHS FOR METALLURGY: GLOBAL
  CONSUMPTION, THROUGH 2011 (METRIC TONS)   157
                                   Consumption and Revenues of Rare Earths by
                                     Element  157
TABLE 98 RARE EARTHS FOR METALLURGY: GLOBAL
   CONSUMPTION BY ELEMENT, THROUGH 2011 (METRIC TONS
   REO)   158
FIGURE 15 RARE EARTHS FOR METALLURGY: CONSUMPTION
   SHARE BY ELEMENT, 2011 (%)  158
FIGURE 15 (CONTINUED)  159
TABLE 99 RARE EARTHS FOR METALLURGY: GLOBAL REVENUES
   BY ELEMENT, THROUGH 2011 ($ MILLIONS)  159
                         Market Growth Trends 159
TABLE 100 FORECAST -- HIGH-PERFORMANCE ALLOYS: GLOBAL
  CONSUMPTION, THROUGH 2016 (METRIC TONS)  160
                         Market Forecast  160
TABLE 101 FORECAST -- RARE EARTHS FOR METALLURGY:
  GLOBAL CONSUMPTION, THROUGH 2016 (METRIC TONS)   160
                                   Consumption and Revenues of Rare Earths by
                                     Element  160
TABLE 102 FORECAST -- RARE EARTHS FOR METALLURGY:
   GLOBAL CONSUMPTION BY ELEMENT, THROUGH 2016 (METRIC
   TONS REO)  161
FIGURE 16 FORECAST -- RARE EARTHS FOR METALLURGY:
   CONSUMPTION SHARE BY ELEMENT, 2016 (%)  161
FIGURE 16 (CONTINUED)  162
TABLE 103 FORECAST -- RARE EARTHS FOR METALLURGY:
   GLOBAL REVENUES BY ELEMENT, THROUGH 2016 ($
   MILLIONS)  162
     GLASS/CERAMICS SECTOR  162
TABLE 104 RARE EARTH ELEMENTS FOR GLASS AND CERAMICS,
  2011  163
               CURRENT MARKET SUMMARY  164
TABLE 105 RARE EARTHS FOR GLASS AND CERAMICS: GLOBAL
  CONSUMPTION, THROUGH 2011 (METRIC TONS)  164
                         Consumption and Revenues of Rare Earths by Element  164
TABLE 106 RARE EARTHS FOR GLASS AND CERAMICS: GLOBAL
  CONSUMPTION BY ELEMENT, THROUGH 2011 (METRIC TONS
  REO)   165
FIGURE 17 RARE EARTHS FOR GLASS AND CERAMICS:
   CONSUMPTION SHARE BY ELEMENT, 2011 (%)  165
FIGURE 17 (CONTINUED)  166
TABLE 107 RARE EARTHS FOR GLASS AND CERAMICS: GLOBAL
   REVENUES BY ELEMENT, THROUGH 2011 ($ MILLIONS)   166
               MARKET GROWTH TRENDS  166
                   Polishing Compounds  166
TABLE 108 FORECAST -- CMP SLURRIES: GLOBAL REVENUES BY
  MATERIAL TYPE, THROUGH 2016 ($ MILLIONS)  167
TABLE 109 FORECAST -- ADVANCED DISPLAYS: GLOBAL
  REVENUES BY TYPE, THROUGH 2016 ($ BILLIONS)   168
                         Advanced Ceramics   168
TABLE 110 GLOBAL MARKET FOR ADVANCED CERAMICS,
  THROUGH 2016 ($ BILLIONS) 168
                         Glass   169
TABLE 111 FORECAST -- GLASS MARKETS FOR RARE EARTHS:
  GLOBAL REVENUES BY SECTOR, THROUGH 2016 ($ BILLIONS)   169
               MARKET FORECAST   169
TABLE 112 FORECAST -- RARE EARTHS FOR GLASS AND
  CERAMICS: GLOBAL CONSUMPTION, THROUGH 2016 (METRIC
  TONS)   170
                         Consumption and Revenues of Rare Earths by Element  170
TABLE 113 FORECAST -- RARE EARTHS FOR GLASS AND
   CERAMICS: GLOBAL CONSUMPTION BY ELEMENT, THROUGH
   2016 (METRIC TONS REO)  170
FIGURE 18 FORECAST -- RARE EARTHS FOR GLASS AND
   CERAMICS: CONSUMPTION SHARE BY ELEMENT, 2016 (%)  171
TABLE 114 FORECAST -- RARE EARTHS FOR GLASS AND
   CERAMICS: GLOBAL REVENUES BY ELEMENT, THROUGH 2016
   ($ MILLIONS)  172
     ELECTRONICS, OPTICS, AND OPTOELECTRONICS  172
TABLE 115 RARE EARTH ELEMENTS FOR ELECTRONICS, OPTICS,
  AND OPTOELECTRONICS, 2011  173
TABLE 115 (CONTINUED)  174
               CURRENT MARKET SUMMARY  174
TABLE 116 RARE EARTHS FOR ELECTRONICS, OPTICS, AND
  OPTOELECTRONICS: GLOBAL CONSUMPTION, THROUGH 2011
  (METRIC TONS)  175
                         Consumption and Revenues of Rare Earths by Element  175
TABLE 117 RARE EARTHS FOR ELECTRONICS, OPTICS, AND
  OPTOELECTRONICS: GLOBAL CONSUMPTION BY ELEMENT,
  THROUGH 2011 (METRIC TONS REO) 176
FIGURE 19 RARE EARTHS FOR ELECTRONICS, OPTICS, AND
   OPTOELECTRONICS: CONSUMPTION SHARE BY ELEMENT, 2011
   (%)   176
FIGURE 19 (CONTINUED) 177
TABLE 118 RARE EARTHS FOR ELECTRONICS, OPTICS, AND
   OPTOELECTRONICS: GLOBAL REVENUES BY ELEMENT,
   THROUGH 2011 ($ MILLIONS)   177
                MARKET GROWTH TRENDS  177
                    Advanced Displays  177
                    Light-Emitting Diodes   178
                    Lasers   178
                    Optical Fibers  178
TABLE 119 FORECAST -- OPTICAL FIBERS: GLOBAL MARKET,
  THROUGH 2016 ($ MILLIONS/MILLIONS OF KILOMETERS) 179
                          Microelectronics   179
TABLE 120 SEMICONDUCTORS: REVENUES BY REGION, THROUGH
  2016 ($BILLIONS)  179
                MARKET FORECAST   180
TABLE 121 FORECAST -- RARE EARTHS FOR ELECTRONICS,
  OPTICS, AND OPTOELECTRONICS: GLOBAL CONSUMPTION,
  THROUGH 2016 (METRIC TONS)  180
                          Consumption and Revenues of Rare Earths by Element  180
TABLE 122 FORECAST -- RARE EARTHS FOR ELECTRONICS,
   OPTICS, AND OPTOELECTRONICS: GLOBAL CONSUMPTION BY
   ELEMENT, THROUGH 2016 (METRIC TONS REO)  181
FIGURE 20 FORECAST -- RARE EARTHS FOR ELECTRONICS,
   OPTICS, AND OPTOELECTRONICS: CONSUMPTION SHARE BY
   ELEMENT, 2016 (%)   181
FIGURE 20 (CONTINUED)  182
TABLE 123 FORECAST -- RARE EARTHS FOR ELECTRONICS,
   OPTICS, AND OPTOELECTRONICS: GLOBAL REVENUES BY
   ELEMENT, THROUGH 2016 ($ MILLIONS)  182
      CHEMICAL SECTOR   182
TABLE 124 RARE EARTH ELEMENTS FOR THE CHEMICAL
  INDUSTRY, 2011   183
TABLE 124 (CONTINUED)   184
                CURRENT MARKET SUMMARY  184
TABLE 125 RARE EARTHS FOR THE CHEMICAL INDUSTRY:
  GLOBAL CONSUMPTION, THROUGH 2011 (METRIC TONS)   185
                          Consumption and Revenues of Rare Earths by Element  185
TABLE 126 RARE EARTHS FOR THE CHEMICAL INDUSTRY:
  GLOBAL CONSUMPTION BY ELEMENT, THROUGH 2011 (METRIC
  TONS REO)  185
FIGURE 21 RARE EARTHS FOR THE CHEMICAL INDUSTRY:
   CONSUMPTION SHARE BY ELEMENT, 2011 (%)  186
TABLE 127 RARE EARTHS FOR THE CHEMICAL INDUSTRY:
   GLOBAL REVENUES BY ELEMENT, THROUGH 2011 ($
   MILLIONS)  187
               MARKET GROWTH TRENDS  187
TABLE 128 FORECAST -- CATALYSTS AND PHOTOCATALYSTS:
  GLOBAL REVENUES, THROUGH 2016 ($ MILLIONS)  188
               MARKET FORECAST   188
TABLE 129 FORECAST -- RARE EARTHS FOR THE CHEMICAL
  INDUSTRY: GLOBAL CONSUMPTION, THROUGH 2016 (METRIC
  TONS)   188
                         Consumption and Revenues of Rare Earths by Element  189
TABLE 130 FORECAST -- RARE EARTHS FOR THE CHEMICAL
   INDUSTRY: GLOBAL CONSUMPTION BY ELEMENT, THROUGH
   2016 (METRIC TONS REO)  189
FIGURE 22 FORECAST -- RARE EARTHS FOR THE CHEMICAL
   INDUSTRY: CONSUMPTION SHARE BY ELEMENT, 2016 (%)  190
TABLE 131 FORECAST -- RARE EARTHS FOR THE CHEMICAL
   INDUSTRY: GLOBAL REVENUES BY ELEMENT, THROUGH 2016
   ($ MILLIONS)  191
     ENERGY SECTOR   191
TABLE 132 RARE EARTH ELEMENTS FOR THE ENERGY SECTOR,
  2011  192
               CURRENT MARKET SUMMARY  192
TABLE 133 RARE EARTHS FOR THE ENERGY SECTOR: GLOBAL
  CONSUMPTION, THROUGH 2011 (METRIC TONS)  193
                         Consumption and Revenues of Rare Earths by Element  193
TABLE 134 RARE EARTHS FOR THE ENERGY SECTOR: GLOBAL
   CONSUMPTION BY ELEMENT, THROUGH 2011 (METRIC TONS
   REO)   193
FIGURE 23 RARE EARTHS FOR THE ENERGY SECTOR:
   CONSUMPTION SHARE BY ELEMENT, 2011 (%)  194
TABLE 135 RARE EARTHS FOR THE ENERGY SECTOR: GLOBAL
   REVENUES BY ELEMENT, THROUGH 2011 ($ MILLIONS)  195
               MARKET GROWTH TRENDS  195
                   Batteries   195
                   High-Temperature Superconductors  196
TABLE 136 FORECAST -- SUPERCONDUCTORS: GLOBAL
  REVENUES BY TYPE, THROUGH 2016 ($ MILLIONS)  196
                         Fuel Cells   196
TABLE 137 FORECAST -- FUEL CELLS: GLOBAL REVENUES BY
  TYPE, THROUGH 2016 ($ MILLIONS)  197
                         Solar Cells and Other Applications  197
TABLE 138 FORECAST -- PHOTOVOLTAIC MODULES: GLOBAL
  PRODUCTION BY TYPE, THROUGH 2016 (MW)  198
               MARKET FORECAST   198
TABLE 139 FORECAST -- RARE EARTHS FOR THE ENERGY
  SECTOR: GLOBAL CONSUMPTION, THROUGH 2016 (METRIC
  TONS)   199
                         Consumption and Revenues of Rare Earths by Element  199
TABLE 140 FORECAST -- RARE EARTHS FOR THE ENERGY
   SECTOR: GLOBAL CONSUMPTION BY ELEMENT, THROUGH 2016
   (METRIC TONS REO)   199
FIGURE 24 FORECAST -- RARE EARTHS FOR THE ENERGY
   SECTOR: CONSUMPTION SHARE BY ELEMENT, 2016 (%)  200
TABLE 141 FORECAST -- RARE EARTHS FOR THE ENERGY
   SECTOR: GLOBAL REVENUES BY ELEMENT, THROUGH 2016 ($
   MILLIONS)  201
     OTHER SECTORS  201
TABLE 142 RARE EARTH ELEMENTS FOR OTHER SECTORS, 2011 202
TABLE 142 (CONTINUED)   203
               CURRENT MARKET SUMMARY  203
TABLE 143 RARE EARTHS FOR OTHER SECTORS: GLOBAL
  CONSUMPTION, THROUGH 2011 (METRIC TONS)   204
                         Consumption and Revenues of Rare Earths by Element  204
TABLE 144 RARE EARTHS FOR THE OTHER SECTORS: GLOBAL
   CONSUMPTION BY ELEMENT, THROUGH 2011 (METRIC TONS
   REO)   204
FIGURE 25 RARE EARTHS FOR OTHER SECTORS: CONSUMPTION
   SHARE BY ELEMENT, 2011 (%)  205
TABLE 145 RARE EARTHS FOR OTHER SECTORS: GLOBAL
   REVENUES BY ELEMENT, THROUGH 2011 ($ MILLIONS)   206
               MARKET GROWTH TRENDS  206
TABLE 146 FORECAST -- VARIOUS APPLICATIONS OF RARE
  EARTHS IN THE LIFE SCIENCES, SENSORS AND
  INSTRUMENTATION, AND CONSUMER SECTORS: GLOBAL
  REVENUES, THROUGH 2016 ($ BILLIONS) 206
               MARKET FORECAST   207
TABLE 147 FORECAST -- RARE EARTHS FOR OTHER SECTORS:
  GLOBAL CONSUMPTION, THROUGH 2016 (METRIC TONS)   207
                         Consumption and Revenues of Rare Earths by Element  207
TABLE 148 FORECAST -- RARE EARTHS FOR OTHER SECTORS:
   GLOBAL CONSUMPTION BY ELEMENT, THROUGH 2016 (METRIC
   TONS REO)  208
FIGURE 26 FORECAST -- RARE EARTHS FOR OTHER SECTORS:
   CONSUMPTION SHARE BY ELEMENT, 2016 (%)  208
FIGURE 26 (CONTINUED)  209
  TABLE 149 FORECAST -- RARE EARTHS FOR OTHER SECTORS:
    GLOBAL REVENUES BY ELEMENT, THROUGH 2016 ($
    MILLIONS)  209

CHAPTER EIGHT: GLOBAL INDUSTRY STRUCTURE 210
    MINERS AND SUPPLIERS OF RARE EARTHS   210
  TABLE 150 MINERS AND SUPPLIERS OF RARE EARTHS, 2011  211-217
  TABLE 151 GEOGRAPHICAL DISTRIBUTION OF KEY PLAYERS, 2011
    (NUMBER OF COMPANIES)   218
       OTHER KEY PLAYERS IN THE RARE EARTH INDUSTRY  218
  TABLE 152 OTHER RELEVANT INDUSTRY PLAYERS, 2011  218
  TABLE 152 (CONTINUED)   219
       NOTABLE RECENT INDUSTRY CHANGES  219
  TABLE 153 NOTABLE INDUSTRY CHANGES SINCE 2009  219
  TABLE 153 (CONTINUED)   220
       RARE EARTHS PRODUCTION BY REGION  220
  TABLE 154 RARE EARTHS PRODUCTION BY REGION, THROUGH
    2016 (METRIC TONS)   221
       RARE EARTHS CONSUMPTION BY REGION   221
  TABLE 155 RARE EARTHS CONSUMPTION BY REGION, THROUGH
    2016 (METRIC TONS)   222
       COMPANY PROFILES  222
           AGC SEIMI CHEMICAL   222
           ARAFURA RESOURCES  223
           BAOTOU STEEL RARE EARTH HIGH-TECH   224
                Baotou Rare Earth  224
                Baotou Research Institute of Rare Earths   225
           CHINA MINMETALS  226
           CHINA RARE EARTH HOLDINGS   227
           DANDONG JINLONG RARE EARTH 228
           FERRO CORPORATION   229
           GANSU RARE EARTH GROUP   230
           INDIAN RARE EARTHS   231
                Indian Rare Earths (Continued)  232
           IRTYSH RARE EARTHS   233
           LYNAS CORPORATION   233
                Lynas Corporation (Continued)  234
           MITSUI MINING AND SMELTING  235
                Nippon Yttrium   236
                 MOLYCORP   236
                      Molycorp (Continued)   237
                 NEO MATERIAL TECHNOLOGIES  238
                      Neo Material Technologies (Continued)  239
                 RHODIA 240
                      Rhodia (Continued)  241
                 SANTOKU CORPORATION   242
                      Santoku Corporation (Continued)  243
                 SHIN-ETSU CHEMICAL CO , LTD   244
                      Shin-Etsu Chemical Co , Ltd  (Continued)  245
                 SHOWA DENKO  246
                 SUMMIT ATOM RARE EARTH COMPANY   247
                 TREIBACHER INDUSTRIE   248
                      Treibacher Industrie (Continued)  249
                      Treibacher Industrie (Continued)  250

CHAPTER NINE: U S  PATENT ANALYSIS
    INTRODUCTION   251
    SUMMARY OF PATENTS AWARDED DURING THE PERIOD 2009
      THROUGH 2011  251
   TABLE 156 RARE EARTHS -- U S  PATENTS, 2011  252-262
   TABLE 157 RARE EARTHS -- U S  PATENTS, 2010  263-275
   TABLE 158 RARE EARTHS -- U S  PATENTS, 2009  276-283
     GENERAL TRENDS  284
TABLE 159 RARE EARTHS: U S  PATENT TRENDS, 2009­2011  284
FIGURE 27 RARE EARTHS: U S  PATENT TRENDS, 2009­2011
   (NUMBER OF PATENTS)  285
     TRENDS BY COUNTRY AND REGION   285
FIGURE 28 SHARES OF U S  PATENTS RELATED TO RARE
   EARTHS BY REGION, 2009­2011 (%)  286
FIGURE 29 RARE EARTHS: PATENTS BY COUNTRY, 2009­2011 (%)  287
FIGURE 29 (CONTINUED)  288
     TRENDS BY ASSIGNEE   288
         TRENDS BY ASSIGNEE (CONTINUED)  289
TABLE 160 ASSIGNEES OF U S  PATENTS RELATED TO RARE
  EARTHS, 2009-­2011   289

     TRENDS BY PATENT CATEGORY  295
FIGURE 30 RARE EARTHS: SHARES OF U S  PATENTS BY
   CATEGORY, 2009­2011 (%)   296
     TRENDS BY APPLICATION   296
         TRENDS BY APPLICATION (CONTINUED) 297
FIGURE 31 RARE EARTHS: SHARES OF U S  PATENTS BY
   APPLICATION, 2009­2011 (%)   298
     TRENDS BY RARE EARTH TYPE 299
FIGURE 32 RARE EARTHS: SHARES OF U S  PATENTS BY
   MATERIAL TYPE, 2009­2011 (%)  300