9 REEs on t he Cr it ica l L is t D e m an d is d ri v en in larg e p art by tw o o f t h e fast est gr o wing s ect o rs e n erg y and h ig h te ch T h e cri ticali t y o f e a ch el em ent dep end s on t h e end app li ca tio n de m a n d patte rn Su p p ly an d dem an d c alcu la tio n s ar e c o m p li cate d b eca u se each REE h a s dif feren t ap p li catio n s and is p ro d u ced in v aryin g qu an ti ties T h is m eans that c er tai n rare ear ths w il l be in sh o r t sup p ly an d o thers w il l b e in surp lu s depen d in g o n t h e sup p ly an d d em an d f u n d am entals o f the e n d m arket s The fas te s t g ro wing m ark et s egm ents are p er m an ent m ag n e ts r e cha rg eabl e b att eries an d p h o sph o rs particu lar ly g ive n t h eir app li cati o n in th e fast g r o wing gr ee n energ y and hig h t ech se g m ents In 2 0 1 0 T h e US D epar t m en t o f E n erg y c las sifi ed the fi v e REE s critic al t o t h e se m ark et s t o be in short sup p ly Fo u r o f these ar e th e H REE s Ch in a s M in istr y o f C o m m erce ha s ind icated t h a t Ch in as HR EEs c o u ld be d epl et ed in t h e n ex t 1 5 2 0 y ears R EE on th e C r i t i cal L i st A p p l i cati on s E s t i m at e d C om pound A nn ual G r owt h R at e 2 010 2015 Ligh t N eo d ymi u m Pe rma n en t mag n et s au t o c at alys t s p et r ole u m re f in i n g laser s 16 H ea vy D ys p ro siu m Pe rma n en t mag n et s h yb rid e n gin es 16 Eu ro p iu m Ph osp h or s f u el c ells n e u t ro n ab sor b er s 27 Te rb i u m Ph osp h or s p er man e n t magn et s 30 Yt t ri u m Red p h osp h or f l u or esce n t la mp s c er amics me t al allo ys 30 S o u rce IMCOA a n d CIB C W o rl d M a rk et s a n d D u n d ee Ca p i t a l M a rk et s These m in eral s w i th the e x ceptio n o f Y tt riu m ar e e xpe cte d t o be in sh o r t sup p ly o v er the ne xt 1 0 y ea rs The m ag n itu d e an d du rati o n o f t h ese short ag es will m ain ly d epend o n the succe s s o f REE ex p lo rati o n p ro jec ts Vari o u s go v ern m ents an d ind u strial us ers w o rld wide ha v e begu n t o de v el o p st ra te g ies t o s afeg u ard t h e ir REE sup p li e s in o rd er t o o v erc o m e fu tu re sup p ly p r o b le m s So m e i n d u strial users ha v e est ab li shed j o in t v entur es with m in in g c o m p an ies M arket m echan ism s sho u ld e n sur e seri o u s sh o rtag es are av ert ed in t h e lo n g t er m This sup p ly g ap has l ed t o in crea sin g at t entio n f ro m go v ernm ents ex p lo ra tio n co m p an ies an d e n d users S o u r c e U S D e p a r t m e n t o f E n e r g y C r it i c a l Mat e r ial s s t r a t e g y D e c 2 0 1 0 M e d i u m T e r m C r i t i c a l i t y S h o r t T e r m C r i ti c a l i t y