Toyota is developing an alternative motor for future hybrid and electric cars that does not need rare-earth minerals.

Engineers in Japan and the US are working on a lightweight induction motor that is more efficient than the magnet-type currently used in the Toyota Prius.

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A spokesman based at Toyota’s US unit in California said that research is at an advanced stage. He added: “It’s a long-term approach. When you’re looking at a geopolitical issue like rare-earth supply, that can lead to developments that create very good solutions.”

The motor could help cut Toyota’s dependence on rare-earth materials such as neodymium.

These mostly come from China, which controls more than 90% of the global market for the metals. China’s government cut export quotas for the first half of 2011 by 35% last month. That follows a 72% reduction in the second half of 2010, causing the price of some of the metals to more than double.

Neodymium and dysprosium are used in motor magnets in Nissan’s Leaf EV, General Motors’ plug-in Volt and Honda’s Insight hybrid, as well as the Prius. The metals are also used in mobile phones and rechargeable batteries.

Induction motors can also offer higher efficiency and durability than permanent-magnet motors. Permanent-magnet motors have been favoured for hybrids and some EVs until now because they can be more compact and have better torque density over a broader range of driving cycles.

From next year Toyota will start selling its RAV4 EV with an induction motor supplied by Tesla Motors that uses no rare-earth minerals. Tesla’s all-electric Roadster sports car and future Model S sedan use a similar motor.

The Tesla motor is separate from Toyota’s next-generation project, the spokesman said.

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