Toyota acquiring own sources of rare earth metals

The Nikkei reports that Toyota Tsusho Corp., a Toyota-affiliated trading house, will start importing rare-earth elements from Vietnam and India, giving the Toyota Motor Corp. group independent sources of these key materials for the production of hybrid cars.

China, which currently supplies 90% of the rare-earth elements used in Japan, is beginning to toughen export restrictions. Japan demand for rare-earth elements is forecast to increase about 15% per year. Neodymium, for example, is a key component in magnets used in motors for hybrid cars and for disk drives.

The combined Vietnamese and Indian imports will meet more than 20% of domestic consumption, according to the report.

Source: Green Car Congress