The auto industry seems to be moving towards embracing hybrids and electric vehicles. One needs only look at examples like the 2011 Nissan LEAF and 2011 Chevy Volt, or the the new Chevy Volt MPV5 EV-crossover concept.

However, there’s growing concern that the industry is casting a rather blind eye to what exactly the impact of its leap might be. [...] The current third-generation Toyota Prius uses 25 lbs. (11 kg) of expensive rare-earth metals — approximately twice the amount found in a standard vehicle.

That’s a big problem as rare earth metals, known scientifically as lanthanides are almost exclusively controlled by China. Could this stranglehold slow progress of these new vehicles and hasten China’s ascent to the world’s most dominant economy?
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The biggest uses of lanthanides are in the battery pack and electric motor of hybrids and EVs. Bryce believes that lanthanide demand will outpace supply as early as 2013, slowing the industry’s growth and allowing China to raise its resource prices. He states, “There are no significant supplies (of lanthanides) that can come on stream in anything close to the time span the market need.”