Business
Toyota Innovates Way Out Of Rare Earth Handcuffs
SOURCE: VantageWire.com - According a report from Reuters today, Toyota Motor Corp. has develo...
About this update from Gamma Resources Ltd.
[{"type":"text","content":"\nToyota Innovates Way Out Of Rare Earth Handcuffs\n\nSOURCE: VantageWire.com - According a report from Reuters today, Toyota Motor Corp. has developed a way to manufacture hybrid and electric vehicles without the use of rare earth metals. The announcement comes in response to China’s export quotas that have made the metals less economic.\n\n \nChina made waves in 2010 when it imposed export quotas on all rare earth elements (“REEs”), of which the country holds a near monopoly through producing more than 95% of the world’s supply. The announcement sent shockwaves through the manufacturing sector, while capital rushed to non-Chinese companies that had REEs as a primary focus. Aside from MolyCorp (NYSE: MCP) and Lynas Corp (OTC: LYSCF), which have looked to be the most likely candidates to win the race to supply REEs to the marketplace in the wake of a Chinese chokehold, it doesn’t appear that a solution would be coming soon for manufacturers beholden to China’s whims.\n \nThis is why the move by Toyota is interesting, as it is proactive instead of reactive, and represents a move forward in innovation that should make other manufacturers take notice. With Japan as a nation representing a third of global rare earth demand, having Toyota emerge as a leader in a fight to cut consumption helps dissolve the optics of Japan’s helplessness pertaining to the REE issue. And this hybrid solution doesn’t look like it’ll have to wait long either, as Japan’s Kyodo News reports that Toyota’s technology could hit the market in two years if the price of rare earths doesn’t subside.\n \nThere’s a saying in Japan that, \"Oil is the blood of industry, steel is the bread of industry and rare earths are the vitamins of industry.\" From an investor’s point of view, the announcement does impact the timing available to potential REE producers, as grass roots REE exploration may need to be sped up to meet the demand in time. The window of opportunity is small, but possibly quite lucrative for the winner of the race to provide manufacturers with the supply they need.\n \nWhile the USA’s MolyCorp and Australia’s Lynas each appear to be the heir apparent to the REE crown, should China officially close its doors, several other companies based in Can...