Rare Earths: China's LED industry under the 12th Five Year Plan tnr.v, ilc.v, czx.v, lmr.v, abn.v, ura.v, rm.v, cgp.v, alk.ax, ng.to, abx, ree, avl.to, mcp, gwg.v, rm.v, clq.v, wlc.v, li.v, ggg.ax, ruu.v, pl.v, mdl.v, efg.v

  

  Rare Earths have a very wide range of applications, we have been covering mostly those ones crucial for the Electrification of our transportation - namely Neodymium and Dysprosium. LED is another driver for this sector. With looming Energy transition to post carbon society LED will be taking a crucial role in energy conservation and China leads here the way again.

  

  With James Dines calling on the last opportunity to get on the Rare Earths bandwagon we continue our search for the fundamental drivers in this sector and the hidden value opportunities among the bitten into the dust juniors miners.
  This week reversal in the markets with S&P advance of more than 5% provide some hope for the risk sipping down the food chain into the miners and junior mines particularly. Jim Puplava this week talks about the record level of short interest in Mining stocks.

"Lithium Charge: China Begins Implementation of "12th five-year" Plan for Electric Cars. China takes Electrification of its transportation system very seriously and Chinese companies are very active now in the Lithium and Rare Earths spacesecuring the supply of this strategic commodities."

China's LED industry under the 12th Five Year Plan

Jessie Lin, DIGITIMES Research, Taipei [Friday 1 July 2011] China's focus on developing energy-saving and environmental industries under its 12th Five Year Plan promises to deliver a considerable boost to its LED industry. This DIGITIMES Research Special Report provides in-depth analysis on how each segment of China's LED supply chain, from the mining of rare earth elements to the implementation of LED streetlights will be affected. DIGITIMES is offering an early bird discount of 33% from the US$1,500 list price of the report for subscribers who order before July 14. Abstract China's 12th Five Year Plan (12th FYP) for the 2011-2015 period is intended to address issues of both economic growth and energy consumption. Among the seven new key industries listed in the 12th FYP are "energy saving and environmental protection" and "new materials," both of which are closely connected with the LED industry. While China's LED industry in China is still in its initial phase of development, the considerable boost promised by the 12th FYP will ensure that the industry plays a major role in both GDP growth and reducing energy consumption. The China LED industry is currently somewhat bottom-heavy in structural terms, with a large downstream sector matched with only a small upstream industry. This means that despite the fact that China-based firms lag behind Taiwan-based firms and the major international players in upstream sectors such as LED epitaxy technology, the potential for future growth remains enormous. The effect of the 12th FYP and associated subsidy policies is projected to lead to healthier and more comprehensive development throughout the entire LED industry in China. The 12th FYP will also leverage China's considerable advantage in rare earth materials to promote the development of the LED phosphor sector in China. Following China's imposition of limits on rare earth exports and the quarter-on-quarter increase in the price of such materials, the issue of whether China opts to use rare earth materials as a strategic commodity to pursue technical partnerships with foreign companies will be one of the developments that is most worthy of close attention. Table of contents Overview of the 12th Five Year Plan for the LED industry     Table 1: Major industries for development under China's 12th FYP     Green industries and associated policies in the 12th Five Year Plan: GDP and energy consumption trends, 2005-2020        Chart 1: China's GDP and energy consumption per unit of GDP, 2005-2011 (b CNY, TCE/10k CNY)        Chart 2: GDP and energy consumption per unit of GDP, 2010-2020 (b CNY, TCE/10k CNY)        Investment in energy saving and environmental protection from the 8th Five Year Plan to the 12th Five Year Plan        Chart 3: CO2 emissions per unit GDP, 2005-2020 (t/10k CNY)        Chart 4: Investment in energy saving and environmental protection from the 8th FYP to the 12th FYP (b CNY)     China's 12th Five Year Plan for the LED industry and associated policies        Table 2: China's national solid-state lighting (SSL) plans and policies        Table 3: Core issues for solid-state lighting (SSL) in China's 12th FYP     Development of the 12th Five Year Plan for the LED industry        Chart 5: Phases of development for key applications of LED lighting in China, 2000-2020        Chart 6: China's main development goals for LED upstream technologies in the 10th to 13th Five Year Plans (luminous efficacy in lm/W)        Chart 7: Overview of China's 10th to 13th Five Year Plans with regard to the LED upstream industry and technologies        Table 4: Support institutions for the China's LED R&D, market development and sales sectors     Key areas for economic development within the 12th Five Year Plan for the LED industry        Chart 8: The seven strategic new industries' share of GDP will grow to 15% by 2020        Chart 9: Employment in primary, secondary and tertiary industry in China, 2009        Chart 10: GDP distribution across primary, secondary and tertiary industry in China and features of its industrial structure, 2010        Chart 11: The output value of China's LED industry, 2008-2015 (b CNY)        Chart 12: The LED industry's share of output value for the seven major strategic new industries in 2015 (b CNY)     Goals and key points for the LED industry in China's 12th Five Year Plan        FYP: "self-supply" and "concentration"        Chart 14: Comparison of LED lighting industry policy in China, Japan and South Korea China LED industry structure     Production value distribution        Chart 15: Output value distribution in the China LED industry, 2008-2010 (b CNY)        Chart 16: Share of output value in the China LED industry by sector, 2008-2010        Chart 17: Output value annual growth rates by sector for the China LED industry, 2008-2010        Chart 18: Number of upstream and downstream LED firms in China by sector, 1H11     Current state of China LED industry        Chart 19: Characteristics of China LED industry by sector        Chart 20: China-based SMD package manufacturers by capacity (KK/month, no. firms)        Chart 21: 2015 self-sufficiency rate targets for the China LED industry by sector        Chart 22: Luminous efficacy of LED chips and future targets, 2007-2015 (lm/W)     Industry clusters, China's national SSL industry bases        Chart 23: China's national solid-state lighting (SSL) bases        R&D institutions are concentrated in the northern Bohai Rim region, giving the region a strong technical edge for SSL        Table 5: SSL plans for the Bohai Rim region        Yangtze River Delta region combines a wealth of industrial experience with ample funding for the development of SSL        Table 6: SSL plans in the Yangtze River Delta region        Pearl River Delta is the largest package market for SSL in China and a focal point for investment        Table 7: SSL plans in the Pearl River Delta region        Jiangxi plans to transform SSL into a "CNY100 billion industry", while Xiamen is Fujian's major draw for investment from Taiwan        Table 8: SSL plans in the Jiangxi and Fujian region        SSL industries of Xi'an and Wuhan are small but their potential should not be overlooked        Table 9: SSL plans in other regions     Conclusion Standards and patents for LED products     Downstream accounts for bulk of standards        Chart 24: Main China national and industry standards for LED lighting        Chart 25: Provisions of China's major national and industry standards for LED lighting        Southeastern coastal areas have proactively set local standards for LED lamps/lights, with Guangdong and Fujian leading the way        Chart 26: China's national and local standards for LED streetlights     LED patents        China's patents are concentrated in the LED packaging sector, with applications mainly coming from coastal areas        Chart 27: China and Japan's standing in the global industry in terms of LED-related patents        Chart 28: China's global standing in LED chip patents in comparison to other countries/regions        Chart 29: China's LED patents are highly concentrated in the coastal regions        Taiwan-based companies are the largest group of foreign firms applying for LED patents in China        Chart 30: Breakdown of China LED patent applications by firms from other regions/countries        China to focus on LED chip patent applications during 12th FYP        Table 10: Projected patent application items for China during the 12th FYP period MOCVD capacity expansion     Chart 31: China MOCVD equipment purchase subsidies have stimulated investment     Table 11: Major local government usage of MOCVD equipment subsidies     China-based LED chip makers        China-based LED chip makers concentrated in Jiangsu and Anhui have purchased more than 600 MOCVD systems in 2011 so far        Table 12: Number of MOCVD systems added by major China-based chip manufacturers in 2011        Chart 32: MOCVD installations in Anhui Province        Chart 33: Electech next phase of investment objectives        Chart 34: Electech MOCVD system expansion activities in Anhui Province, 2011        Yangzhou's generous MOCVD subsidies help the city to attract a number of LED chip manufacturers        Table 13: Major LED chip manufacturers' MOCVD system expansion activities in Jiangsu Province, 2011        LED chip makers move into Jiangxi, Shandong and Zhejiang        Table 14: Major LED chip manufacturers' MOCVD system expansion activities in other regions of China, 2011     Taiwan-based companies        Table 15: Taiwan-based LED chip makers' China investment plans LED substrates     Chart 35: 12th FYP's development direction for LED substrates and trends in China-based firms' sapphire investments     Table 16: Comparison of different LED substrate technologies and related focus of China's 12th FYP     Table 17: Subsidies for sapphire and silicon substrates in the 12th FYP's 863 Plan     Table 18: Subsidies for silicon carbide substrates in the 12th FYP's 863 Plan     Sapphire        Table 19: Production and capacity plans of sapphire ingot manufacturers in East China        Table 20: Production and capacity plans of sapphire ingot manufacturers in regions other than East China Rare earth elements     Global position of China's rare earth industry        Chart 36: Status of the rare earth industry in the 12th FYP        Chart 37: Distribution of China's rare earth resources and their global significance        China's 12th FYP imposes stricter controls on rare earth raw material production and strengthens development efforts        Table 21: Development of China's rare earth policies, 2007-2015        Chart 38: Major rare earth development policies in China's 12th FYP     Use of rare earth materials in the LED industry        Chart 39: MOST has allocated a budget of CNY350m for subsidies for rare earth application industries during the 12th FYP period        Table 22: Main application sectors for rare earth light-emitting materials        Chart 40: Rare earth elements are vital materials for LED lighting phosphors        China's policies limiting rare earth shipments have caused a tenfold increase in rare earth prices in just one year        Chart 41: China's export quotas for rare earth materials, 2009-2011 (t)        Chart 42: Prices of rare earth materials used in LED phosphors, January-June 2011 (US$)        China-based businesses are working with MOST's policies to promote the development of rare earth light-emitting materials        Chart 43: Major China manufacturers of rare earth phosphors and their development plans        Chart 44: China's development of rare earth materials LED applications     Chart 45: 2015 LED application market distribution targets in the 12th FYP     Chart 46: Key energy saving projects and targets in the 12th FYP     Chart 47: Implementation methods and examples of energy saving product public welfare projects     LED TVs        Chart 48: China's flat panel TV energy efficiency limits and efficiency ratings        Chart 49: China LED TV shipments and penetration rates, 2009-2013 (k units)     LED street lighting        Chart 50: China's changing LED streetlight market, 2009-2013 (k lamps)     LED tunnel lighting        Chart 51: China LED tunnel lighting market, 2009-2013 (k units)  Full report (subscription required)  Price: NT$32,000 (approx. US$999)

Related articles

• Rare Earth Elements (smpa.wordpress.com)
• Lithium Charge: World Bank Study Highlights Rapid Growth Potential for China's Electric Vehicles Industry tnr.v, czx.v, alk.ax, lmr.v, tsla, rm.v, nup.ax, srz.ax, usa.ax, jnn.v, abn.v, res, mcp, avl.to, quc.v, cee.v, sqm, fmc, roc, li.v, wlc.v, clq.v, lit (sufiy.blogspot.com)
• Lithium Drive: WSJ: Ford Seeks Major Growth of Electric Sales tnr.v, czx.v, alk.ax, lmr.v, tsla, rm.v, nup.ax, srz.ax, usa.ax, jnn.v, abn.v, res, mcp, avl.to, quc.v, cee.v, sqm, fmc, roc, li.v, wlc.v, clq.v, lit, nsany, byddf, gm, dai, rno.pa, hev, aone, (sufiy.blogspot.com)
• Powered by Lithium: China Plans 220,000 EV Charge Points and 2,351 Battery Switch Stations tnr.v, czx.v, alk.ax, lmr.v, tsla, rm.v, nup.ax, srz.ax, usa.ax, jnn.v, abn.v, res, mcp, avl.to, quc.v, cee.v, sqm, fmc, roc, li.v, wlc.v, clq.v, lit, nsany, byddf, (sufiy.blogspot.com)
• The Energy Report: Lithium Powers The Green Revolution tnr.v, czx.v, alk.ax, lmr.v, tsla, rm.v, nup.ax, srz.ax, usa.ax, jnn.v, abn.v, res, mcp, avl.to, quc.v, cee.v, sqm, fmc, roc, li.v, wlc.v, clq.v, lit, nsany, byddf, gm, dai, rno.pa, hev, aone, vlnc (sufiy.blogspot.com)
• James Dines on Silver and Gold Markets and what is coming next for Rare Earths and Lithium tnr.v, rvm.v, laq.v, bvg.c, bva.v, tnr.v, asm.v, grc.to, amm.to, ktn.v, gbn.v, rvm.to, mgn, asm.v, sgc.v, ngq.to, btt.v, alk.ax, nem, fcx, bvn, auy, abx, (sufiy.blogspot.com)
• US Dollar Collapse: China Is Ready To Dump US Treasuries: Xinhua: China should cap forex reserves at 1.3 trillion U.S. dollars: China banker tnr.v, ng.to, laq.v, bvg.c, bva.v, grc.to, amm.to, ktn.v, gbn.v, rvm.to, mgn, asm.v, sgc.v, ngq.to, btt.v, alk.ax, (sufiy.blogspot.com)
• Lithium Charge in China: Foshan Electrical Advances on Lithium Battery Venture With Hefei Guoxuan tnr.v, czx.v, alk.ax, lmr.v, tsla, rm.v, nup.ax, srz.ax, usa.ax, jnn.v, abn.v, res, mcp, avl.to, quc.v, cee.v, sqm, fmc, roc, li.v, wlc.v, clq.v, lit, nsany, (sufiy.blogspot.com)
• Lithium Drive: Ford's electrification strategy tnr.v, czx.v, alk.ax, lmr.v, tsla, rm.v, nup.ax, srz.ax, usa.ax, jnn.v, abn.v, res, mcp, avl.to, quc.v, cee.v, sqm, fmc, roc, li.v, wlc.v, clq.v, lit, nsany, byddf, gm, dai, rno.pa, hev, aone, vlnc (sufiy.blogspot.com)
• Lithium Charge: AutoBlogGreen: Better Place signs deal in China; State Grid wants 2,300 swap stations installed by 2015 tnr.v, czx.v, lmr.v, rm.v, alk.ax, sqm, cgp.v, abn.v, ura.v, nup.ax, usa.ax, srz.ax, fmc, roc, lit, li.v, wlc.v, clq.v, res.v, ree, avl (sufiy.blogspot.com)
• Lithium Drive: New Electric Cars: BMW Active E on CNBC today bmw, tnr.v, czx.v, alk.ax, lmr.v, tsla, rm.v, nup.ax, srz.ax, usa.ax, jnn.v, abn.v, res, mcp, avl.to, quc.v, cee.v, sqm, fmc, roc, li.v, wlc.v, clq.v, lit, nsany, byddf, gm, dai, rno.pa, hev, a (sufiy.blogspot.com)
• Lithium Investments: Richard Mills: Strategic Investor For International Lithium tnr.v, czx.v, alk.ax, lmr.v, tsla, rm.v, nup.ax, srz.ax, usa.ax, jnn.v, abn.v, res, mcp, avl.to, quc.v, cee.v, sqm, fmc, roc, li.v, wlc.v, clq.v, lit, nsany, byddf, gm, dai, (sufiy.blogspot.com)
• Peak Oil Transition: IMF Sees Oil Prices Staying High - World Economic Outlook tnr.v, czx.v, lmr.v, rm.v, alk.ax, sqm, fmc, roc, lit, li.v, wlc.v, clq.v, res.v, ree, avl.to, nsany, f, gm, rno.pa, dai, byddf, hev, aone, vlnc (sufiy.blogspot.com)