As hybrid cars gobble rare metals, shortage looms
Sep 16th, 2009 by Rick Arms
The Prius hybrid automobile is popular for its fuel efficiency, but its electric motor and battery guzzle rare earth metals, a little-known class of elements found in a wide range of gadgets and consumer goods.
That makes Toyota’s market-leading gasoline-electric hybrid car and other similar vehicles vulnerable to a supply crunch predicted by experts as China, the world’s dominant rare earths producer, limits exports while global demand swells.
Worldwide demand for rare earths, covering 15 entries on the periodic table of elements, is expected to exceed supply by some 40,000 tons annually in several years unless major new production sources are developed. One promising U.S. source is a rare earths mine slated to reopen in California by 2012.
Among the rare earths that would be most affected in a shortage is neodymium, the key component of an alloy used to make the high-power, lightweight magnets for electric motors of hybrid cars, such as the Prius, Honda Insight and Ford Focus, as well as in generators for wind turbines.
Close cousins terbium and dysprosium are added in smaller amounts to the alloy to preserve neodymium’s magnetic properties at high temperatures. Yet another rare earth metal, lanthanum, is a major ingredient for hybrid car batteries.
Production of both hybrids cars and wind turbines is expected to climb sharply amid the clamor for cleaner transportation and energy alternatives that reduce dependence on fossil fuels blamed for global climate change.
Toyota has 70 percent of the U.S. market for vehicles powered by a combination of an internal-combustion engine and electric motor. The Prius is its No. 1 hybrid seller.
Jack Lifton, an independent commodities consultant and strategic metals expert, calls the Prius “the biggest user of rare earths of any object in the world.”
Each electric Prius motor requires 1 kilogram (2.2 lb) of neodymium, and each battery uses 10 to 15 kg (22-33 lb) of lanthanum. That number will nearly double under Toyota’s plans to boost the car’s fuel economy, he said.
Toyota plans to sell 100,000 Prius cars in the United States alone for 2009, and 180,000 next year. The company forecasts sales of 1 million units per year starting in 2010.
As China’s industries begin to consume most of its own rare earth production, Toyota and other companies are seeking to secure reliable reserves for themselves.
Reuters reported last year that Japanese firms are showing strong interest in a Canadian rare earth site under development at Thor Lake in the Northwest Territories.
A Toyota spokeswoman in Los Angeles said the automaker would not comment on its resource development plans. But media accounts and industry blogs have reported recently that Toyota has looked at rare earth possibilities in Canada and Vietnam.




Once again, the Law of Unintended Consequences raises its ugly head and laughs.
This is going to go the way of the ethanol debacle. Wait until the wind turbine idiots start fighting it out with the car makers. This is going to be fun to watch. [ okay, who's got the popcorn? ]
The nickel for these batteries is mined in Sudbury, Ontario, and smelted nearby, doing damage to the local environment. The smelted nickel is shipped to Wales, where it is refined. Then it is sent to China to be made into nickel foam. Then it goes to Japan, where it is made into a battery. Then it goes into cars, some of which are shipped to the United States and some of which go to Europe. All of that seaborne transport consumes a lot of fossil fuel.
Many energy problems can be traced back to the environmentalists themselves. For example, they prevented extended oil drilling and pipelines in Alaska, leaving the middle east as the major supplier, then they turn around and say “oil makes us dependend on others” and allegedly we had to invade Iraq to “get oil” when Iraq’s supplies are nothing compared to domestic oil/shale oil. Basically they create the shortage and cause price increases, then use the shortage&prices as proof for it being “unsustainable”, then they go ahead pushing their own solutions instead, and there their goal is always the same: no energy at all, no conveniences at all, we’re supposed to cut back and live like monkeys in the jungle.
I found your site on technorati and read a few of your other posts. Keep up the good work. I just added your RSS feed to my Google News Reader. Looking forward to reading more from you down the road!
can you do thi for me,
Excellent site. It was pleasant to me.,
Beautiful site,