In response to the decision by China to cut back on rare earth exports, Toyota (NYSE:TM) has began to work on developing a motor which won't rely upon rare earths, casting a shadow over the long-term outlook for companies with significant rare earth exposure such as Molycorp (NYSE:MCP), Rare Element Resources (NYSE:REE), China Shen Zhou Mining (NYSE:SHZ), Qiao Xing Universal, (Nasdaq:XING), General Moly (AMEX:GMO) and Avalon Rare Metals (AMEX:AVL).
At this time Toyota said research is in the advanced stage, but as typical with the Japanese, are looking at it from a long-term point of view.
Called an inductive motor, it will have more efficiency than the magnet-type motors now in use, and will be lighter as well.
Toyota's all-electric RAV4 SUV is already scheduled to be released, and that vehicle will be supplied with an inductive motor developed by Tesla Motors (Nasdaq:TSLA). A different project than the first one mentioned, it won't require the use of rare earths in it either.
It would definitely be a disruptor in the rare earths sector if this becomes a major trend, which is definitely a possibility in light of China's lowering of export quotas.
Tuesday, January 18, 2011
Toyota (NYSE:TM) Developing Motor Not Dependent on Rare Earths
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"China cut its 2010 rare earth export quota 39 percent year on year while rare earth development and production capacities were reduced by 25 percent and 23 percent, respectively, he said.
In addition, China has added a 15- to 25-percent export duty on rare earth exports while banning the export of 41 rare earth-related processed products."
See link: http://business.globaltimes.cn/china-economy/2010-11/592588.html
Curiosity which "41 rare earth-related processed products" are banned for Chinese export?
Any vital to USA military?
Why doesn't USA secure their own Rare Earth supply including manufactured rare earth products?
Might come in handy in "war time"?
Toyota Executives: How do you spell DESPERATION in Japanese?
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