Reuters reported that Germany's electronics industry said that 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.

China's dominance of rare earths used in high tech products has aroused growing international attention after reports that the government has been choking off shipments possibly out of political pique.

The warning by the ZVEI industry group which represents firms with an annual turnover of some EUR 150 billion follows a drive by Berlin to improve access to raw materials.

Mr Klaus Mittelbach ED of ZVEI said that the market for rare earths has become particularly critical due to the export restrictions in China. Germany which depends on raw materials from abroad to power its export driven economy is so concerned about prospective bottlenecks that its main industry federation is staging a congress to address the issue.

The ZVEI said that it was worried China could cut exports of metallic elements like samarium, scandium, yttrium and neodymium further in 2011 disrupting production of parts needed for hybrid motors, rechargeable batteries and other goods.

Mr Mittelbach said that China has this year cut exports to 38,000 tonnes from 60,000 tonnes which among other things has pushed up the price of samarium nine fold.

(Sourced from Reuters)