Molycorp minerals is at the forefront of American companies aiming to bring rare earth elements to the market. The company not only has the California mine that is being revamped, but also has expanded to international operations. As promising as its business may be, it’s important to have a well-rounded understanding of the company and business model, so you can assess to what extent future profits, if any, have been priced into the stock at present. That’s one of the simplest share market tips there are. Molycorp Minerals Helping Deliver The Raw Materials We Depend On It’s not uncommon for folks to think that rare earth metals much have rare applications. Indeed, not only have most people never heard about any of the rare earth elements, but they also generally cannot identify any common uses of rare earth oxides. However, the fact of the matter is that rare earths are abundantly found in many things that make the world go round. Technological devices of all sorts use rare earth elements to make them function, such as medical imaging devices, computers and other electronics, and televisions. If you have ever used a digital camera or cell phone, there’s a great chance you’ve just leveraged rare earths to your benefit. Everything from petrochemicals to fiber optics require rare earths to function. And it’s not just the large number of applications that are great. In some instances, the amount of rare earths needed is great. For instance, modern windmills consume a few hundred pounds of rare earths. Hybrid car batteries are quite heavy, and a hefty amount of that is rare earths. As a specific example, the Toyota Prius is a common illustration, as the battery for a Prius can take around thirty pounds of Lanthanum. Molycorp Minerals Helping Alleviate Dependence On China Molycorp minerals can help eliminate the grand reliance the rest of the world has on China for its rare earth supply. Ironically, China, which used to import rare earths from the U.S., is now supplying them. China was blessed with the opportunity to process rare earths very cost effectively as a mere by-product of a base metal mining operation. Having produced rare earths so cost-effectively, China could sell them at prices so low that virtually nobody could compete. However, over time the applications for rare earths expanded, as did the number of people demanding the products that use them. Inevitably, there was more and more buying pressure against a relatively fixed supply. The result was unavoidable higher prices. This opened the door for new explorers and producers to pursue rare earths once more. The economic feasibility of pursuing rare earths couldn’t have come soon enough either. China’s control over the rare earth supply can have crippling effects on the rest of the world. With an estimated 95-99% control over rare earths both in China and abroad, China’s decreased exports leave other nations little alternatives. China has begun significantly decreasing exports so as to feed their own need. To really put things in perspective, China is particularly short on the so-called heavy rare earth elements, and could easily end up importing those before long. As you can imagine, these actions only drive prices higher, which will benefit companies such as Molycorp minerals as they bring supplies online.