"... Toyota is planning to manufacture key components for its hybrid cars outside Japan for the first time, in a bid to boost sales. ... "Everybody recognises that China is going to be a very important market for all car manufacturers," Paul Nolsco, a spokesperson for Toyota, told the BBC.
"Given the scale that we hope to achieve in China, it makes more financial sense to make these parts there," he added. The company said it is likely to manufacture electric motors and batteries at its Chinese facility, but a final decision was yet to be made.
Rare earth factor? While boosting sales and capturing a larger share of the world's biggest car market is one of the main reasons behind Toyota's decision, analysts said other factors may have played a big role as well.
China's restrictions on exports of rare earth elements is one of those factors. Some of the rare earth elements are key components hybrid car parts such as batteries. ... "Rare earths and concerns about their supplies could very well have played a role in this decision," Vivek Vaidya of Frost & Sullivan told the BBC.
He explained that Toyota's move to start producing components in China may help counter these restrictions as it will be buying the elements to use within China. ..." From:
http://www.bbc.co.uk/news/business-14784031
Billy T comment: That is the same reason why Hitachi, world's leader in RE magnets is thinking about moving its production (and leading technology) to China. I noted this and the obvious impact on MolyCorp's sales of REs (No Westerners making RE magnets when they can buy them cheaper from China).
In post 2060, this thread, I told MCP was way over priced when I bought some "way out of the money" puts on MCP as told here:
http://www.sciforums.com/showpost.php?p=2814913&postcount=78. I sold them last week when "in the money" for three times what I paid. $8.85 vs $2.95/ contract. MCP's stock has really dived, much more so than the market in general as others realized what I immediately did and posted here with Forbe's report of Hitachi's plans. It may go lower still but I did not want to be too greedy.