1. Price increases due to phosphor increases
Philips Lighting, GBU Fluorescent
2011

2. What is Rare Earth? How is related to the lighting industry?
There are 17 rare earth elements (REEs). They have names like lanthanum, europium and yttrium. And they're critical to a variety of high-tech products and manufacturing processes, including catalytic converters, petroleum refining, color TV and flat panel displays, permanent magnets, batteries for hybrid and electric vehicles, medical devices, and phosphor powders used in fluorescent lamps.
Resources: DOI, US, Geological Survey, Circular 930-N; USA Congressional Research Service, Sep 2010, Wikipedia

3. The issue of raising costs: demand of Rare Earth is rapidly increasing while supply is controlled by China
According to Goldman Sachs:
"We envisage that the market for rare earths will remain in severe deficit in 2011 and 2012, and that prices will trend higher over the next 18 months.“

4. Rare Earth (REO) price determines Phosphor cost
Global Rare Earth raw material price is fully transparent ->
Europium (Eu)
Cerium (Ce)
Lanthanum (La)
Terbium (Tb)
Gadolinium (Gd)
REO material 78% of costprice
REO material 3% of costprice
Yttrium (Y)
Europium (Eu)
REO material100% of cost price
Avg impact REO costprice is 70%!

5. China dominates world supply market
Source: US Geological Survey
Philips Lighting, GBU Fluorescent, Irene Klein, Gerbrand Swart, 2011

6. Rare Earth Price Trend in the past 3 years indicates massive increase since 2011

7. The increase accelerates in 2011
Yttrium
Terbium
Cerium
Europium
Source:
On top of phosphor, cost increase come from labor cost (20% up), components (average 30%) and plastics (average 30%).