Japanese companies are still very disciplined, and when a technology is still in the real room, there are special personnel to analyze the market prospects of this technology, make predictions about future sales volume, prices, etc., and determine the problems of raw material procurement and production capacity building accordingly.

The number jù that Sadao Hirano said was the result of the calculation of the research department, and this result could be used as the basis for Miyagawa's decision-making.

"What are our current stockpiles of dysprosium oxide and terbium oxide?" Miyagawa asked again as he turned to Nagatomo Eiji.

"Less than 60 tons of dysprosium oxide and only 5 tons of terbium oxide." Nagatomo Yongji said gloomily.

"There's such a big gap?" Miyagawa is lost in thought.

Regarding rare earths, there has always been a view that rare earths are not "rare" and are not strategic resources that need special protection. The reason for this view is that the global annual demand for rare earths is only a few hundred thousand tons, and China's proven reserves of rare earths are as high as 30 million tons, even if the world's rare earths are supplied by China, it is enough to mine for more than 200 years. If we consider the rare earth resources of other countries, then rare earths will be enough for another 1000 years.

One of the biggest flaws in this theory is that it does not take into account that with the development of human science and technology, the demand for rare earths will gradually rise. Once a certain use of rare earths is discovered, it is entirely possible that the demand for rare earths will increase by 10 or 100 times, and then can you still say that these rare earths will be enough for 1,000 years?

The most typical example is the demand for neodymium oxide. Before the invention of NdFeB, the demand for neodymium oxide was very small, only one or two hundred tons a year. However, after the emergence of NdFeB, the annual demand for NdFeB suddenly increased to more than 2,000 tons, an increase of more than 10 times over the past.

The same is true for dysprosium and terbium. Originally, these two elements were only stored as additives and were in very little demand. In the NdFeB permanent magnet material, in order to enhance its coercivity, about 2% dysprosium is generally added, which is the main use of dysprosium oxide in the production of Chunshan Company. Because of the small amount used, the storage capacity of Chunshan Company is also small. As long as it can ensure the production needs for two or three years, it is sufficient.

However, when dysprosium terbium ferroalloys appeared, the situation was very different. Dysprosium and terbium have changed from additives to the main raw materials, and the demand has naturally increased by 10 times. Originally, only 60 tons of dysprosium oxide and 5 tons of terbium oxide were stored, and now it seems that the gap is too large.

"Changyou-kun, the experts you have consulted, what do you think the price of dysprosium oxide can rise in the next three years?" Miyagawa asked Nagatomo Eiji to make a serious decision that would affect the fate of the company. He must be fully informed.

Nagatomo said with a bitter face: "They believe that according to the current situation, the price of dysprosium oxide may rise to $500 per kilogram, or $500,000 per ton, in the short term." The most important thing is that they don't know the dysprosium terbium ferroalloy technology that we have, if they do......"

Nagatomo Eiji didn't continue, because the words that followed were really appalling. The experts' estimate of the price trend is based on the existing supply and demand for dysprosium oxide. Once dysprosium terbium ferroalloy enters the practical field, the demand for dysprosium oxide will rise significantly. The supply and demand situation will become even worse. At that point, the projection of $500 per kilogram will be a foolish point of optimism.

If you think about the rise in international oil prices, you can understand how terrifying it will be if the price of a mineral resource rises.

"I'll submit an application to the board of directors for a $100 million loan. A reserve of 600 tonnes of dysprosium oxide and 100 tonnes of terbium oxide has been established. This will be a strategic reserve for our company. Miyagawa said to everyone in a heavy tone.

Stockpiling raw materials sounds easy and wise, but it's actually very tricky. $100 million in raw materials. Placing it in the warehouse cannot generate any value, on the contrary, it has to pay high interest and storage fees, which will become a heavy burden for the enterprise. However, if you don't build reserves, you can't do it, once there is a stir in the market, the enterprise can only be slaughtered by others.

Whether or not to build reserves, and how much to build, is a very complex issue that involves forecasting the market and technology, and even taking into account the discipline of the opponent. However, from what can be seen so far, the price of dysprosium oxide and terbium oxide will continue to rise anyway, and if something that costs $50 a kilogram now rises to $500 or even $5,000 in a few years, then the reserves that have been built up with huge sums of money now will be able to play a role.

A room full of managers knew how important this matter was to Chunshan Company, and the feeling of holding the lifeblood in the hands of others was really unpleasant. Sadao Hirano even had an idea that if he hadn't gotten a sample of dysprosium terbium ferroalloy from Qin Hai at that time, maybe there wouldn't have been such a thing. However, he also knew that this was just an illusion, and the invention of dysprosium terbium ferroalloy permanent magnets was a huge threat to Chunshan Company anyway. Whether the Spring Hill Company accepts or does not accept it, it is the same wolf bèi.

"Regarding the work on expanding the reserves, will we start now?" Nagatomo asked.

"Start now." Miyagawa said with certainty. Of course, he had to go through the approval of the board of directors for such a big decision, but the purchase of 600 tons of dysprosium oxide was not something that could be achieved overnight. At present, the supply of dysprosium oxide in the entire international market is only about 200 tons, and in order to establish such a large reserve, in addition to sweeping away the dysprosium oxide on the market, it is also necessary to put pressure on the Chinese government to increase the production and sales of dysprosium oxide. As for the other rare earth suppliers in the world, let them wash and sleep, they don't have such production capacity.

"I see." Nagatomo said, "Mr. Miyagawa, I need to go to China in person, and if necessary, I may have to meet with officials of the Chinese Planning Commission, or I may have to meet with Mr. Qin Hai, and I need the company to give me sufficient authorization." In addition, to make Chinese willing to increase the supply of dysprosium oxide, I am afraid that the Japanese government needs to communicate with the Chinese government through official channels. ”

"On the government side, I will arrange for people to do it." Miyagawa said, "You and Hirano-kun will study the issue of dysprosium terbium ferroalloy again, determine an accurate purchase quantity, and the highest price we can accept, and then report back to me." ”

"Hey!" Nagatomo Nagasu and Hirano Sadao stood up at the same time. Answered in unison.

At a time when the clouds of gloom were shrouded in the inner gloom of the Chunshan Company, Qin Hai was sitting in the office of Wang Hongsheng of the State Planning Commission, talking and laughing, and introducing the results of his trip to the south.

"The export of heavy rare earths has completely stopped, and it will not resume within two months. The price of heavy rare earth oxides in the international market has risen by an average of 3 times, and the highest has risen by 10 times. This time, cabbage was finally able to sell for meat. Qin Hai said proudly to Wang Hongsheng.

"There's no interruption to rare earth production, right?" Wang Hongsheng asked. Qin Hai's remediation of rare earths, he knew in advance, and he has been paying serious attention to it for a period of time. He was also quite satisfied with Qin Hai's practices in the southern provinces.

Qin Haidao: "No, after the rectification, the production order is better, and we have invested in a batch of large-scale mining equipment, and the production capacity has increased by more than three times." But. At present, all rare earth products are stored in the zài warehouse and will be thrown out when the price is right. ”

Wang Hongsheng said: "This kind of trick is only what you dare to do with a rich guy, I heard that your Daqin Group bought these rare earth products out of your pocket and spent a lot of money, right?" ”

Qin Hai shook his head, and Niu said cochantly: "It didn't cost much, that is, tens of millions." We can't let the small miners who have invested money to build factories not see the benefits, right? ”

"Don't you worry that the price of rare earths will not rise in the future, and all your reserves have been smashed into your hands?" Wang Hongsheng deliberately questioned.

Qin Haidao: "First of all, it is impossible for rare earth prices not to rise. Now no one can figure out my production capacity, so there is a general expectation of price increases. The psychology of buying up and not buying down. The same is true for international buyers. Secondly, even if foreign buyers have the ability to carry it and not buy it, I am not afraid, our Daqin Group has the ability to digest these inventories. ”

Chunshan Company struggled with the question of how many rare earths to store, but there was no pressure at all here in Qinhai, which was the right of the resource owner to speak.

If it weren't for the fear of international trade pressures. Qin Hai really doesn't have to make money by selling rare earths. A group of scientists from Anhe Institute of Materials are now working at full speed on the research of rare earth deep processing technology, and he can digest more rare earths himself. However, just as you can't eat alone when mining, you can't eat alone when using mineral products. He always has to leave some rare earth raw materials for foreign high-tech enterprises. Otherwise, it will attract criticism.

"When are you going to wait until it ships?" Wang Hongsheng said, "You are stuck in the international market supply, and some foreign companies have protested, which is not in line with international trade rules." ”

Qin Hai said with a smile: "Isn't our country not yet a member of the tariff and trade agreement, what can international trade rules do to me?" What's more, I didn't say that it would not be shipped, but that it would be adjusted now and the mine would be temporarily closed. The Mount Pass rare earth mine in the United States is already planning to close down forever, isn't there no one chirping? ”

Wang Hongsheng said: "That is what I said, but after all, our country wants to participate in international trade, and some things cannot be done too much. To tell you the truth, the Ministry of Foreign Trade has come to us several times in a row these days, asking us to put a little pressure on you and release some rare earth products. They are directly facing overseas merchants, and the pressure is not small. ”

Qin Haidao: "Director Wang, I came to you just for this matter. I can tell you that I plan to resume supply to the international market in two months, but the supply is only half of what it was before. My actual production capacity is three times as high, which means that I have the equivalent of two and a half times the supply in my hand, which can be used to bargain with foreign dealers. Does the Planning Commission plan to use this weapon? ”

"Using this weapon?" Wang Hongsheng's eyes lit up, and he understood what Qin Hai was referring to.

Reducing the supply of the international market on the grounds of remediating the mine is a statement that no one can fault with it, and it can even be completely believed by others. But after all, the international market needs rare earths, so manufacturers will come to the Chinese government for help, and may even communicate with the government level. This is the time when the state can take the opportunity to blackmail, and if you agree to my conditions, you can give you some rare earths, and if you don't agree to my conditions, then give you a few official words, so that you can return in disappointment, and it all depends on whether you can satisfy me.

As for what he wants to extort from foreign countries, Wang Hongsheng can think of too much: preferential terms of trade, the export of certain Chinese goods, and the lifting of restrictions on high-tech products...... These are all things that the Chinese government has gone to great lengths to strive for abroad. Instead of begging others with courtesy and affection, it is better to use rare earth as a condition and force the other party to take the initiative to send the benefits. There is too much difference between active and passive.

To do this, a key point is that there must be an organization that can fully control the production and sale of rare earths, and now, Qin Hai has done just that. (To be continued......)