This signals the beginning of the end of China’s iron grip of the rare minerals market.

In a significant development in the history of automotive, Honda Motors Co Ltd is said to have developed the world’s first motor for hybrid cars without any rare earth metals. The rare earth metal market is heavily dominated and controlled by China. This breakthrough could potentially break iron grasp.

Earlier, producing motors for hybrid vehicles, which are steadily going mainstream in many developed countries has been a challenge since it required a steady supply of rare earth materials, including terbium and dysprosium, which are controlled by the Chinese.

In 2010, when China started asserting itself in territorial disputes, it imposed a de facto ban on the exports of rare earth minerals to Japan. Since then Japanese auto manufacturers have been trying to diversify their sourcing of these minerals.

Japan’s third largest manufacturer, Honda Motors, disclosed that this breakthrough in this technology came about with its partnership with Daido Steel Co Ltd. It will be used in the upcoming ‘Freed’ minivan, scheduled for launch later this year in autumn.

Although the new motor still uses some rare earth materials, including neodymium, it however can be sourced from Australia and North America, apart from China.

As part of its strategic development, Honda aims to boost its production of new-energy vehicles, including hybrids, from their currently production level of 5% to two-thirds of its production line-up, by 2030.

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Tags: Top, Honda Motors, Daido Steel, rare metals, hybrid cars, terbium Dysprosium, Freed’ minivan,