China’s got the Pentagon shaking in its boots — and for good reason.

With more than 97% of the world’s rare earth metals produced in China, its recent announcement of a 72% reduction in exports could screw our military…

The Pentagon is scrambling for alternatives, but they don’t really have time to scramble.

Rare earth resource demand must be met.

Without these metals, technological advancements are history. The world in which we have become accustomed to living in and the way in which we work, communicate, and progress will change drastically.

And not just for the military…

All China has to do is follow through with the threat, and our world changes.

In fact without rare earth metals, some of our most important modern technologies could never exist: rechargeable batteries, electric motors, photo optics, and solar cells, just to name a few. The impact on “green” technology would be crippling…

Toyota’s Prius, for example, depends on 2.2 lbs. of neodymium in the hybrid’s electric motor, and 22-33 pounds of lanthanum in the car’s battery pack.

Heck, your car requires about 10 pounds of rare earths: cerium, zirconium, lanthanum, and europium, for things like catalytic converters, headlight glass, and mirror finishing.

Rare earths are a vital part of high-tech medical devices, including MRIs and X-ray machines.

The U.S. government understands just how dire a situation we’ll be in if our rare earth metals well suddenly dries up…

Introducing S.3521: Rare Earths Supply Technology and Resources Transformation Act of 2010 — an act acknowledging the fact that “many modern defense technologies such as radar and sonar systems, precision-guided weapons, cruise missiles, and lasers cannot be built, as designed and specified with the use of rare earths.”

This will be a companion bill to Colorado Congressman Mike Coffman’s Rare Earth Supply-China Technology and Resource Transformation Act of 2010.

Both will call for the creation of a rare earths stockpile for national defense, while encouraging federal loan guarantees for companies involved in re-starting rare earth supply chains.

It’s a wait-and-see situation, though. We all know how quick Congress is to act…

The situation is nothing short of a crisis

Global rare earth demand has been increasing for years; production has not.

And prices have skyrocketed because of this…

Terbium is up 70% this year. Yttrium prices have more than doubled. Gadolinium is up about 500%, if not more. Samarium is through the roof.

And demand isn’t likely to wane anytime soon — which means rare earths are about to experience hyper-growth moving forward.

And while you can buy Molycorp, Lynas, and Pele Mountain-type companies, Pure Asset Trader just uncovered an 80-cent gem that could skyrocket — and fast.

We’re putting the finishing touches on that report as we speak.

And here’s why we’re excited about this play in particular…

Rare Earth Metals (REEs) are nothing short of crucial to the way we live — that much we know.

But check this out…

This past January, Denmark relinquished its sovereign hold over Greenland’s mineral rights, turning $273 billion in rare earth resources into private property.

Better yet, Greenland’s government just relaxed its restrictions on uranium deposits — meaning companies like Greenland Minerals and Energy can assess Kvanefjeld rare earth elements, uranium, and zinc deposits.

This is big news for our 80-cent company. We’ll give you all the details in our latest report, coming soon.

Keep an eye on your inbox.

Stay Ahead of the Curve,

Ian L. Cooper