By Pratima de sailondon (Reuters)- Tesla\'s shift in the magnetic motor using nd in its Model 3 remote vehicle has increased pressure on the already tight supply of rare earth metals due to export bans, the rare earth metal has been shunned by China\'s largest producer for years. Governments around the world strive to reduce harmful emissions from fossil fuels Electric vehicles drive demand for electric vehicles and metals used to make electric vehicles, such as lithium and cobalt, the key components of batteries. The focus now is nd. Some automakers already use metal-dependent permanent magnet motors because they are generally lighter, stronger and more efficient than copper coil-based induction motors. But this is the transition from Tesla to rare earth. Tesla, a carmaker, has placed its future entirely on electric vehicles. This shows the development direction and demand direction of rare earth metal industry. Research group imarc estimated the market for rare earth elementsiron- Now, boron magnets for motors are worth more than $11. 3 billion, the demand for magnets grew at a compound annual growth rate of 8. The period from 2010 to 5% was 2017 per cent. \"Some electric vehicles use permanent magnet technology for their motors, and perhaps the most famous is the Tesla Model 3 remote. All other Tesla models- Standard Model X and Model 3-- Use induction motors, \"said David Meriman, a senior analyst at metal consulting firm Roskill. He said that the global demand for 31,700 tons of rare earth has exceeded 3,300 tons last year. Demand is expected to climb to 34,200 tons this year and 38,800 tons in 2018, which will lead to a bigger deficit. \"Tesla\'s decision to switch to permanent magnets has completely changed the dynamics of the market,\" said a source with a fund manager specializing in metals. The current nd price is about $1 kg. Far less than the $500 China put on hold exports to Japan in a dispute over disputed islands in 2010, but still 40% higher than in early 2017. China, which resumed rare earth exports in 2015, imposed strict export quotas on a series of rare earth metals in 2010, expressing its desire to reduce pollution and protect resources. People seem to have forgotten China\'s export ban. It may happen again. \"China is indeed a major producer of rare earths, not as much as other countries have invested in rare earths,\" said a rare earth trader . \". Although rare earth has its name, rare earth has been found in many places around the world, but the extraction process is difficult and expensive because it needs to separate a variety of different metals from one deposit. For example, this is different from a much simpler process of recovering copper from ore. China has invested heavily in the processing of rare earth metals, but it is predicted that China\'s crackdown on mining, smelting and other polluting industries will slow supply. It has helped push the price of nd to double September high of $96. \"In terms of environmental damage, rare earth production is as bad as you can get,\" the trader said . \". \"China used to take advantage of its dominance, and now is there any way to stop it from doing so? \"This supply problem encourages automakers to look for ways to reduce the use of nd. Toyota said last month it had found a way to reduce metal usage in electric vehicles by about five. The Japanese company says it has developed a magnet that replaces parts of rare earths with richer, cheaper ones --- Rare earth elements and rare earth elements Toyota aims to use magnets for electric vehicle motors in the next 10 years. Other electric vehicle manufacturers using permanent magnets include BMW, Nissan and Geely. Many companies, including London, produce rare earths outside China. Rainbow Rare Earth listed in Canada- The spectral rare earths of Namibia and Australia are listed. But for now, automakers who make permanent magnet motors still rely heavily on China, which, according to Roskill, accounts for 85% of global rare earth oxide production and is estimated to be 161,700 tons in 2017. Analysts at Morgan Stanley estimate that 50,000 electric vehicles will be available in 2020. 3% of the total, rose to 400,000 on 2025 or 17. 4%, 975,000 or 40 in 2030. 9 percent. ( Presentation of the report by Desai Pratima; Edited by Veronica Brown and Edmund Blair)
