China's Wind Power Sector Struggles with Rare Earth Price Hikes
Source: Renewable Energy World, Liu Yuanyuan (8/17/11)
"The price hikes are expected to intensify the already fierce competition in the sector."
While an increasing number of wind power equipment manufacturers in China have started to adopt direct-drive permanent magnet technology, rare earth minerals, some of the core raw materials used to produce wind turbines, are becoming a significant barrier to their development.
The recent price surges have forced many industry players to halt production or create a complete industry chain by expanding into the upstream sector. The price hikes are expected to intensify the already fierce competition in the sector, causing those who lack capital and expertise to be squeezed out altogether, according to an industry insider.
China's rare earth prices have risen significantly since July 2010, exceeding 200% since the beginning of this year, with some categories reaching 600–1,000%.. . .View Full Article