An accounting company has recently warned metal industry leaders that a number of core manufacturers have a “ticking time-bomb” hanging over them due to an increasing shortage in rare earth metals.

Price Waterhouse Coopers claims that a number of businesses in the automotive, chemicals and energy sectors may face problems as shortages in Beryllium, Cobalt and Flurospar begin to bite. Such metals are used as components in a whole range of items, including military equipment and car batteries.

Malcolm Preston, PwC’s global sustainability leader, commented “Put simply, many businesses now recognise that we are living beyond the planet’s means. New business models will be fundamental to the ability to respond appropriately to the risks and opportunities posed by the scarcity of minerals and metals.”

The report arrives mere weeks after China announced that they would be suspending production of rare metals in an effort to stimulate growth.

Hans Schoolderman of PwC Netherlands, continued “The world’s growing population, an increase in GDP levels and changing lifestyles are causing consumption levels to rise globally – creating a higher and higher demand for resources.”