Toyota Forms Team on Rare Earth Metals Amid China Export ‘Ban’

Sept. 29 (Bloomberg) -- Toyota Motor Corp. has set up a task force on rare earth minerals used in hybrid cars amid reports of China’s ban on exports of the materials to Japan.

The carmaker, based in Toyota City, Japan, established the committee last quarter to explore alternative procurement sources and materials and recycling of used parts, the Nikkan Kogyo newspaper reported today. Toyota spokesman Paul Nolasco confirmed the company has set up such a team, without providing further details.

Rare earth metals include neodymium and dysprosium, which are used in magnets in electric motors of hybrid cars.

Toyota began exploring alternative sources before the recent reports on export restrictions, Nolasco said. Toyota Tsusho Corp., a trading company affiliated with the carmaker, will develop a mine in Vietnam, while the company also secured rights to rare earth metals in India, the Nikkei newspaper reported in September 2009.

China, which controls more than 90 percent of the global market for rare earth metals, last week imposed a “de facto” ban on exports to Japan of the materials, a group of 17 metals used in weapons, hybrid vehicles and laptop computers, Japanese Economy Minister Banri Kaieda said yesterday.

China’s Ministry of Commerce spokesman Chen Rongkai reiterated yesterday that the nation hasn’t imposed an export ban.

To contact the reporter on this story: Makiko Kitamura in Tokyo atmkitamura1@bloomberg.net.

To contact the editor responsible for this story: To contact the editor responsible for this story: Kae Inoue at kinoue@bloomberg.net

Last Updated: September 28, 2010 21:02 EDT