Hybrid Auto's: Production Ability in Danger?

Pop Quiz:  Does anyone know how many elements are on the Periodic Table of Elements?  Better yet, does anyone remember what the Periodic Table of Elements is?

The reason we ask is not to give everyone terrifying flashbacks to your high school chemistry class, it is that a group of the elements have been in the news lately, and will continue to be in the news moving forward, and worth keeping tabs on.

17 of the 118 elements are considered to be the Rare-Earth Metals, and according to at least one source, 97% of the production of these elements comes from China.  In an article by The New York Times (you can read the NYT article here http://nyti.ms/btHVSs), China is threatening to halt trade with Japan in these Rare-Earth Minerals. The implications of a trade halt would be felt deeper than you may realize.

Many of these elements have become an important aspect of Japan’s economy.  Most notably, many of the Rare-Earth Metals are used in the production of electric motors that make both gasoline and hybrid cars run.  If China does indeed halt trade with Japan, production of these cars, and other items would be greatly affected. 

Events like this are worth monitoring on an investment based level too.  Currently, there is only one company, Molycorp, Inc. (MCP), that is trading domestically, and it has only been trading since the beginning of August.  We will continue to monitor the activity in China, as the ramifications if this does indeed cause a trade halt, could reach domestic items as well.