Core Viewpoint - Proterial, formerly known as Hitachi Metals, has developed a new type of electric vehicle motor magnet that does not use heavy rare earth elements, specifically avoiding the use of neodymium [1][3]. Group 1: Product Development - Proterial has successfully trialed a magnet made primarily from iron oxide, which can meet the output power requirements for electric vehicles [3]. - The company does not plan to mass-produce the motors but intends to sell ferrite magnets to motor manufacturers [3]. Group 2: Market Context - The development comes in response to China's export restrictions on rare earth materials, which have pressured Japanese companies heavily reliant on these resources [4]. - In May, Suzuki had to halt production of its Swift model due to rare earth shortages, highlighting the supply risks faced by the automotive industry [4]. Group 3: Rare Earth Market Dynamics - As of the end of 2024, global rare earth reserves are estimated at approximately 90 million tons, a decrease of 20 million tons (18.18%) from 110 million tons at the end of 2023 [4]. - China holds 44 million tons of these reserves, accounting for 48.89% of the global total, and produces nearly 70% of the world's rare earth supply [4][6]. Group 4: International Cooperation - Japan is actively seeking to reduce its dependence on Chinese rare earths by exploring alternative materials and collaborating with the EU on rare earth mining agreements [6]. - Recent discussions between Japan and the EU have focused on enhancing supply chain resilience and reducing strategic dependencies on critical minerals [6].