ge lighting
DESCRIPTION
GE Lighting. Price Increase Announcement June 1, 2011. What are Rare Earths (REs)?. 17 elements from near the bottom of the periodic table. Unique properties have led to a wide variety of applications and are important economically, environmentally and technologically - PowerPoint PPT PresentationTRANSCRIPT
GE Lighting
Price Increase Announcement
June 1, 2011
2GE Proprietary Information
04/19/23
What are Rare Earths (REs)?
• Unique properties have led to a wide variety of applications and are important economically, environmentally and technologically
• Use of REs in high performance products has significantly increased over last 2 decades
• Industry applications: Lighting, EV batteries, military weapons, TV & laptop screens, catalytic converters, magnets, semiconductors
• Toyota Prius uses 1kg/2.2lbs of Neodymium in each vehicle
17 elements from near the bottom of the periodic table
3GE Proprietary Information
04/19/23
White(R60%G30%B10
%)
Red 60%
95% Y
Green 30%
20% Ce
38% La
12% Tb
30% Other
Blue 10%
2% Eu
+ + =
57% Y
6% Ce
3.6% Tb
3% Eu
11.4% La
19% others
5% EU
100% 70% 2% 100%RE%
98% Other
Avg. Rare Earth content - phosphors
REs comprise 65% of lamp phosphors
4GE Proprietary Information
04/19/23
Why do RE prices continue to rise?1. Increased demand for rare earths in widely used products
2. China undercut world prices in the 1990s and now produces 95% of the world’s RE supply
3. China continues to reduce rare earth export quotas
4. Export duties (VAT) imposed to encourage “domestic” production of finished goods in China
5GE Proprietary Information
04/19/23
Rare Earth costsNeodymium, used in Reveal glass, has increased in cost 11x since 2009!
Jan. 200985k RMB/MT
Today930k
RMB/MT
($/Kg in China; 99% purity)Source: metals-pages.com
RE prices are rapidly inflating costs of phosphors used in LFL & CFL products
6GE Proprietary Information
04/19/23
Global challenge impacting everyoneRare Earth Prices Spike, Relief May be Years Away Published May 05, 2011 Global demand for rare earth minerals has skyrocketed in recent years, driven in no small part by the popularity of hybrid cars like the Toyota Prius. At the same time, China -- which is home to the vast majority of the world's rare earth mining operations -- has been tightening its hold on the elements, resulting in a classic supply-and-demand price spike. Since 2009, prices for rare earth minerals have climbed to dizzying heights.
May 19, 2011China Tightens Rare Earth Rules
7GE Proprietary Information
04/19/23
RE-Like inflation on everyday itemsWhat would prices be if you experienced Neodymium inflation rates on some common everyday items?
What would you do differently?
Jan‘09
Mar‘11
Jan‘09
Mar‘11
Jan‘09
Mar‘11
Jan‘09
Mar‘11
8GE Proprietary Information
04/19/23
Other inflationIncandescent Aline:•Increased costs to meet customer demand: keep factory open, add’l shifts (wages), other base costs•Market decline driving component cost increases
LFL/Halogen:•Higher LFL phosphor content required for higher CRI product to comply with July 2012 legislation•Halogen transitioning to Silver Par & HIR+ to meet legislation effective July 2012
Transportation:•Ocean freight•Oil inflation
9GE Proprietary Information
04/19/23
GE responseSourcing to protect supply & minimize cost:•Stockpile RE material •Maximizing “blends” procurement & number of suppliers•Securing long term agreements w/non-Chinese mines
Technology to reduce usage:•Product design projects to reduce RE content•Longer term R&D innovations
Government Relations:•NEMA involvement in DOE legislation extension•Support 3 bills currently in U.S. Congress; 4th introduced May 27th
Pricing to ensure supply:•5% general price increase – amount varies by product line•Announced 6/1/11, effective 8/1/11