Stockpile Follies

Some of the Pentagon's zinc stockpile / DoD photo

History is a video, but policy-makers and academics too often see it as a snapshot. The latest example involves all the heavy breathing due to China’s supposed choke hold on so-called rare-earth elements like cerium, lanthanum and, neodymium vital to 21st Century technologies.

A report released Friday warns that U.S. leadership in new-energy areas like electric vehicles and solar cells could be jeopardized without adequate domestic sources of such materials. Sen. Mark Udall, D-Colo., introduced a bill last week that would compel the federal government to assure such materials remain available. The White House’s Office of Science and Technology Policy is on the case.

The Pentagon has long tried to deal with such challenges through its National Defense Stockpile, a World War II-era creation designed to ensure key raw materials would be available for production during a prolonged war. I first poked around the stockpile nearly 20 years ago, and found it primed and ready to fight — World War I.

It included 150,000 tons of tannin, used to tan cavalry saddles and knapsacks; 3.3 million ounces of quinine, an anti-malaria compound supplanted years ago by superior medicines; 22 million pounds of mica, used as windows in camp stoves and to insulate radio vacuum tubes; and 7 million pounds of thorium nitrate, a radioactive mineral that glows when hot — the key to keeping those kerosene lamps glowing brightly around the old campfire. Since the early 1990s, the Pentagon has declared more than 99 percent of the stockpile irrelevant and ordered it sold, generating about $6.5 billion in sales.

But despite all those sales, apparently not much has changed. In 2008, the National Research Council concluded that “the design, structure, and operation of the National Defense Stockpile render it ineffective in responding to modern needs and threats.” The world simply moves too fast now, with interlocking economies and supply chains ill-suited to the creation of government-managed stockpiles. “The Department of Defense appears not to fully understand its needs for specific materials or to have adequate information on their supply,” the NRC added.

Part of the Pentagon's mercury stash / DoD photo

Last Friday’s report, from the American Physical Society and the Materials Research Society, wisely doesn’t call for stockpiling rare-earth minerals and other key commodities. Such a strategy, it warns, “can act as disincentives to innovation.” Instead, it wants the nation to get a firmer grip on where and how such material can be obtained, wants to encourage the development of substitutes, and urges more recycling of tossed-out cell phones and other electronics. It specifically noted that its recommendations don’t apply to the Pentagon.

Nonetheless, it’s a safe bet that two decades from now, the stuff we’re fretting over today will seem as foreign as the thorium nitrate needed to keep those kerosene lamps glowing.

Related Topics: national defense stockpile, rare earth, National Security
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  • afguy

    What can I say…
    .
    Our “long-range” vision sucks.
    .
    Everyone is waiting for someone else to take the first big (expensive) steps in research-and-development on big projects. The investment bankers are waiting for something BIG to appear to invest in with lo-risk/high return. They’re just not sure WHAT…
    .
    We’re just waiting for that next big “thing” to appear so we can make a buck off of it… all we are sure of is that the “government” needs to stay out of it and leave it to “free enterprise” to take care of it.
    .
    Meantime, we take what we already have, re-package and re-market it, and call it “innovation”…

  • http://www.inworldstudios.com jayackroyd

    In one of our broadcasts, SZ pointed out that South Korean regulatory policy wrt the internet is to favor new entrants into the markets.
    .
    The real problem is that the US regulatory apparatus–an apparatus that is (link) essential to free markets–has shifted to encouraging and enhancing oligopolies, and creating crony capitalism.
    .
    Instead of creating a regulatory environment that encourages innovation, as the Koreans do, the US creates a regulatory environment that protects the entrenched. You see this everywhere–in environmental groups not permitted to bid in timber auctions, in open air slaughterhouses not permitted, in industries that include the telcos, health insurers, drug companies etc.

  • Cookie Puss

    “Mercury Stash” would be a good name for a band.

  • gysgt213

    “the US creates a regulatory environment that protects the entrenched.”
    .
    Take our patent and copyright laws.

  • michaelfury

    Sunday morning
    Is every day for all I care.

    http://michaelfury.wordpress.com/2010/06/15/unipolar-disorder/

  • newfreedomblog

    Yes our fine government and it’s ability to look out for the people. Stockpiles to backup necessary tools, gear, and implements to fight World War I? That is genius no doubt. How would our enemies think we would bring WWI technology to the forefront to fight a war with the Chinese using oil lamps and saddles?
    .
    Who is in charge of this program? Any names?
    .
    I remember a long time ago there were many “Army – Navy” stores scattered around all of the towns across America. You do not see that anymore. Most of the stuff was very cheap, no longer used military gear. Does that have anything to do with these now out-dated supplies too? Or is it simply a matter of a big warehouse that the government simply forgot they had until you “poked” around?
    .
    But, the silver lining in this could be when Obambi and his gaggle of goofballs get done running this country, tanning supplies for our saddles, and chemicals to make our oil lamps burn brighter could come in handy.

  • centfan

    As long as the Republican controlled House passes a resolution preventing disaster relief from going to foreign New Zealand. Taking taxpayer money out of the mouths of our domestic corporations (even the international kind) is the lowest. Besides, we need our emergency response teams on standby in case someone gets a paper cut on Wall Street.

  • afguy

    Let’s say that the Chinese DO have a “choke hold” on the materials we need for the future… EXACTLY WHAT do we do about it?
    .
    Invade them, using “national security” as a pretext? Buy them from them? Unlike we think we can with oil, we can’t just “drill, baby, drill” our way to independence on the rare earth minerals.
    .
    The Chinese already own a big chunk of our debt – which we sold to them with our eyes wide open. If they are thinking strategically “long-term”, they have to realize they have a firm grip on our privates and can cause use much and intense pain without having to fire a shot.
    .
    We don’t have a national strategy to speak of. That smacks too much of “centralized planning” and we can’t have any of those “socialist” concepts among us, can we?
    .
    During the Cold War, a siituation arose (with little fanfare, for obvious reasons) in which the SOLE source of the klystron vacuum tubes used to power the Early-Warning radar sites across northern Canada was allowed to go out of business. (Someone apparently didn’t like the government propping up a company with heavy subsidies.) These tubes didn’t store well and only a relative few were used during a year. So there had to be a continuous, slow trickle of these items into the supply system. Hard to make… not many needed.
    .
    When the stocks were depleted and the sites were down, Procurement frantically started to look for alternate sources worldwide… which they FINALLY found – in Czechoslovakia, one of the Warsaw Pact countries.
    .
    Needless to say, the irony of a capitalist country having to rely on a Communist country to supply an item vital to its national defense (due to short-sightedness and probably a more than a little free-market ideology) was duly noted with more than a little snickering when it became known.
    .
    We’re still waiting for the “Invisible Hand” to supply the next space shuttle or make inexpensive commercial space transport a reality. The next-generation high-speed air transports are still pipe dreams – apparently those that will be positioned to profit from that and build it are still waiting on the thornier technological problems to be solved – by someone else willing to “waste” that money.

  • shepherdwong

    Our “long-range” vision sucks.
    .
    It too is corporate-controlled. We’re still burning dead dinosaurs. It replaced whale-oil. Just a guess but I’m betting, long ago, some well connected company offered the government a great deal on tannin.

  • shepherdwong

    Another good post, Mark.

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