Rare Earth Elements Affect Cost of Fluorescent Lamps

Rare Earth Elements are critical to the production of energy-efficient fluorescent lamps. They are also used in numerous other applications – from smart-phones to X-ray machines to water purification systems. Demand is high, and more than 95% of the world's rare earth output comes from China. In Oct. 2010, the Chinese announced plans to cut production and slash exports of the materials. Consequently, prices have risen dramatically in the last 12 months.

What are Rare Earth Elements?

• 17 elements from the periodic table
• 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

What this Means For You:

GE has secured a supply of rare earths to keep up with demand and does not anticipate a shortage of lamps. The price of the rare earths, however, has almost doubled since last year. Because 65% of the cost of a fluorescent lamp can be attributed to rare earth elements, the pricing for fluorescent lamps has risen.

It should be noted that other lamp manufacturers have been forced to incur higher prices as well. GE has been carefully monitoring the situation.

Information supplied by GE.

Contact your local Graybar lighting specialist for more details.