Los Angeles-based Pavilion Energy Resources and partners have set up a joint venture to explore and develop ocean seafloor rare earth resources.
The company believes a shortage of iron ore, neodymium and other rare earth materials used in electrical generators may hinder the production of accelerator turbines in China if high rates of production continue at current rates.
Neodymium, needed for the generator's configuration, is one of seventeen rare earth metals and is found almost exclusively in China. In fact, the country controls more than 97% of rare earth production.
The company hopes to secure a manufacturing agreement for accelerating turbine production in China.
The company says heavy rare earths and minerals, including titanium, could increase its profitability, while providing the neodymium magnet materials for its generators.
SOURCE: Pavilion Energy Resources