DOD Inspector General report on rare earths and DOD demand.
USA overestimated supply by relying upon production capacity obtained from DPAS/DPA
- underestimated industrial base risk by comparing emergency supply capacity with peacetime demand
- not pursuing sufficient risk mitigation, in the number of rare earths or the quantities to be obtained
- no realistic assessment of Molycorp’s production capability and ability
Rare Earth. Inside the Pentagon had to use the Freedom of Information Act to get an inspector general report on rare earth elements released: IG: DOD Lacks Reliable Process To Assess Rare Earth Element Supply The Defense Department lacks a comprehensive and reliable process to assess rare earth element supply and demand, which could lead to shortfalls that impact readiness, the Pentagon inspector general says in a new report. The report, dated July 3 and obtained by Inside the Pentagon through the Freedom of Information Act on Aug. 20, states that the Defense Logistics Agency Strategic Materials Division (DLA-SM) fell short in its survey of rare earth elements (REE), which may compromise the defense industrial base's supply. According to the report, modeling done by the Institute for Defense Analysis for DLA-SM did not adequately assess market and environmental risks that could adversely affect REE data production forecasts used to estimate supplies. "DLA-SM personnel should have ensured that IDA not only identified, but also analyzed, mitigated and tracked the risks that could adversely affect production capacity forecasts" for rare earth oxides, or unrefined REEs, the report states. DOCUMENT: DOD Inspector General Report On Rare Earth Elements Testy.
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