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Toyota finds way to avoid using rare earth in electric cars

Toyota, the world’s top producer of fuel-saving hybrid cars such as the Prius, could bring the technology to market in two years if the price of rare earths does not come down, Kyodo said, citing a source familiar with the matter.

A Toyota spokeswoman said the company continues to research ways to reduce rare earth usage and has no time frame yet for commercialization.

Rare earth metals like neodymium and dysprosium are used in the powerful magnets in motors that power hybrid and electric cars, and wind turbines, and demand is expected to surge as more of the electric cars hit the market.

China produces more than 95 percent of the world’s rare earth metals. Its efforts to limit exports, citing resource depletion and environmental degradation, have alarmed its customers and trading partners and have sent prices soaring.