World's rare metal supply shrinking as hybrid sales take off

While hybrid vehicles might go a long way towards reducing fuel consumption and tailpipe emissions, their use of lesser-known elements and rare metals have long been subject to criticism by scientists and resource-conscious consumers alike.

Reuters reports that Japanese automakers have shown significant interest in a rare metal site at Canada's Thor Lake in the Northwest Territories since China, the world's largest producer of rare earth metals, limits materials exports and has been considering a total ban on allowing some materials to leave its borders.

Chin's Ministry of Industry and Information Technology is considering an absolute ban on exports of terbium, dysprosium, yttrium, thulium, and lutetium - all of which are used in hybrid vehicle production. According to London's Telegraph, no substitute has been found for the crucial ingredient of neodymium, used in electronics to enhance magnetic power.

Scientists say that the worldwide demand for 15 rare metals is anticipated to grow by 40,000 tons annually - due in major part to hefty demand for vehicles like the Toyota Prius, Ford Escape Hybrid and Honda Insight.

Commodities consultant and strategic metals expert Jack Lifton told Reuters that the Prius is "the biggest user of rare earths of any object in the world."

The Prius, like other hybrids, makes significant use of neodymium, which is used to produce the electric car motor magnets, not to mention wind turbine generators. Terbium and dysprosium are also used in small amounts, while lanthanum is used in the batteries.

All four materials are considered rare earth metals, though certainly their use and demand is not relegated to just hybrid car batteries and electric motors. Still, each Prius uses about 2.2 lbs. of neodymium and each battery uses 22-33 lbs. of lanthanum, figures that will inevitably double as Toyota seeks to boost the Prius' fuel efficiency.