UPDATE 1-Germany says severely hit by rare earth scarcity

China has monopoly power in rare earth metals. This power has allowed them to control price and various types of high-tech production.

Germany has been severely hit by the global shortage of rare earths, and the government should guard against speculation in raw materials, Economy Minister Rainer Bruederle said on Tuesday.

Germany's electronics industry has said the market for rare earths, used to manufacture a range of high-tech products, had become "critical" due to restrictions on exports imposed by China, which produces 97 percent of the world's supply.

"We are severely affected when it comes to energy resources and ... rare earths which are growing scarce," Bruederle said at a raw materials conference in Berlin.

Source: reuters.com
From Bob