From Bloomberg today:
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Honda’s Heavy Rare Earth-Free Hybrid Motors Sidestep China
Jie Ma
@Toousagi
Yuki Hagiwara
losolivoscal
July 11, 2016 — 10:01 PM EDT
Updated on July 11, 2016 — 11:26 PM EDT
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1468291918_honda freed
Photographer: Dimas Ardian/Bloomberg
China produces more than 80% of rare-earth minerals globally
Honda worked on alternative after China restricted exports
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Honda Motor Co. said it’s introducing a motor for hybrid vehicles that won’t need heavy rare-earth minerals, as Japan’s carmakers look to circumvent sourcing the materials from China.
Magnets developed by Daido Steel Co. without heavy rare-earth minerals will be used starting with the Freed minivan scheduled to begin sales this fall, Honda said in a statement Tuesday. Toyota Motor Corp. and Nissan Motor Co. have also taken steps to reduce their reliance on the materials after China restricted exports beginning in 2010 amid diplomatic disputes with Japan.
China accounts for more than 80 percent of global production of the group of 17 rare earths used in everything from smartphones to electric cars to cruise missiles. The scarcity of rare-earth metals and uncertainty of China’s export policy are major concerns, Atsushi Hattori, deputy general manager at Daido’s specialty steel solutions department, told reporters Tuesday in Tokyo.
The decision by China in 2010 to suddenly restrict exports sent users scrambling for supplies of lanthanum, neodymium, cerium and other rare earths. Major suppliers that have developed rare earth-free motors to reduce cost and reliance on China for procurement include Yasukawa Electric Corp., Mitsubishi Electric Corp. and Nidec Corp., according to Hiroshi Ataka, an analyst at IHS Automotive.
Honda First.
Honda and Daido Steel said they’re the first companies to introduce magnets with the high heat resistance required for use in hybrid vehicles that also contain no heavy rare-earth minerals. Honda rose 3.3 percent as of the midday trading break in Tokyo, while Daido Steel climbed 3 percent.
There is some hope on the horizon,
overbore