PHILLIP LASKER, PRESENTER: China's decision to slash exports of rare earths have set off a stampede for alternative supplies. 

The Chinese have a virtual monopoly on production of these raw materials. They're crucial to the manufacture of much of our technology from mobiles to military hardware. 

Australia has enormous deposits, so shares in junior miners and explorers have soared. Is this another bubble? Here's Alicia Barry. 

ALICIA BARRY, REPORTER: They are misleadingly named rare earths. They're 17 obscure elements that dominate the technology of our daily lives, from mobile phones and flat screen TVs to hybrid cars and laptops.

DUDLEY KINGSNORTH, ANALYST, IMCOA: They're not rare; they're more abundant than silver, but there aren't that many resources that are economic and when they are found, it takes a very long time to bring them online.

ALICIA BARRY: And it's going to take time to fill the supply gap left by China after it slashed exports. 

Dudley Kingsnorth is one of the few rare earth experts worldwide. He says Beijing's determination to move up the value chain is behind the moves.

DUDLEY KINGSNORTH: If they just have a mine, that'll employ hundreds of people; if they have a mine that produces separated rare earths, that's probably going to employ thousands of people. But if they go the ultimate value-add and produce laptop computers, hybrid - the batteries for hybrid vehicles and all the cell phones, et cetera, that's going to employ millions of people. 

ALICIA BARRY: The hole in global supply is not expected to be filled until 2015, with demand growing at between eight and 10 per cent a year and supply outside China unable to keep up. 

That sent prices soaring. Some elements have gained as much as five fold in just the last few months.

And it has Japanese electronics producers panicking. They're searching for new suppliers and recently signed a mining deal with Vietnam.

As the world scrambles for new sources, Australia stands to benefit. Outside of China and the United States, Australia has the largest rare earth deposits. 

Lynas Corporation's Mount Weld project in Western Australia is one of the world's biggest. Managing director Nicholas Curtis says production will be in full swing by this time next year.

NICHOLAS CURTIS, CEO, LYNAS: We're certainly accelerating the second phase. The first phase (inaudible) is 11,000 tonnes and we're going to move immediately to develop the second phase to 22,000 tonnes. We have strong customer interest in that. 

ALICIA BARRY: It has already sold out of both of these phases to customers in Japan and Europe.

Lynas isn't the only one ramping up its operations to fill the supply gaps. Arafura Resources has just raised $90 million in a share placement to help it fast-track its Nolans project in the Northern Territory. Managing director Stephen Ward says it's still two to three years away from production and needs more financing to take the next steps.

STEPHEN WARD, MD, ARAFURA RESOURCES: The billion dollars of financing will be used to build and create the mine and the mining infrastructure and the beneficiation plant at Nolans in the Northern Territory and to build the rare earths complex in Whyalla to enable us to produce the rare earth oxides.

ALICIA BARRY: For Alcan Resources it's about 12 years in the making and it's about nine months away from finalising its feasibility study. Managing director Ian Chalmers says the long process is something speculators should be aware of.

IAN CHALMERS, MD, ALKANE RESOURCES: We've seen situations in the last few weeks where companies announce a few rock chips with some high-grade rare earths in it and that company's share price has doubled, tripled or even quadrupled in price. Now, that to me doesn't make any logical sense at all.

ALICIA BARRY: Despite the hype, most analysts are still reluctant to use the word bubble.

TRENT ALLEN, RESOURCE CAPITAL RESEARCH: I think it really depends on which company you're looking at. 

Some are good, advanced projects or high-quality projects and they're just, you could argue, achieving their true value now. Whereas others, you know, there's a lot of speculation going on. 

Any company that's had a rare metals project or a rare earth project has benefitted.

ALICIA BARRY: Bubble or not, the chances are that big Japanese and European consumers of rare earths will be reluctant to rely again on China for their supplies.