It’s easy to assume that the on-going development of hybrid cars is going to be relatively trouble free, and the early assertions that they would only form a small proportion of the overall share of the car market is already proving to be a very flimsy premise. However, there are still some potentially significant challenges ahead that need to be addressed.
Ironically, most of these barriers are environmentally related. For all the positive figures on the falling carbon emissions and fuel economies being made with this new technology, there is a mounting concern about the environmental impact the type of batteries being used in hybrid cars are causing. These batteries are of two types, nickel metal hydride and lithium ion batteries, and both types do present problems. While batteries found in hybrids are far less toxic than standard car batteries, nickel based batteries contain carcinogenic substances. There is growing movement in the industry to minimize the risks posed by these batteries. Hitachi, for example, is attempting to develop more efficient lithium-ion batteries which should take the more hazardous nickel-based batteries out of the equation altogether.
Of greater long-term concern is the shortage of raw materials that is already starting to have an impact on the development of alternative batteries and many other key components in hybrid cars. The availability of, and the subsequent pricing of the little known rare earth element, dysprosium, has significant implications for the future of the hybrid industry. Dysprosium is required in the electric motors and battery systems of hybrid cars. Neodymium, another rare earth substance, which is crucial in fabricating the high-strength magnets that are found in permanent magnet electric motors, is also of concern.
Ironically, nearly all the rare earth elements in the world come from China. Just as the United Kingdom was able to exploit its coal reserves to great economic advantage at the start of the industrial revolution when it not only had the reserves of coal, but also the technology and know-how of how to mine, process and ship it, China finds itself in a similar position today. China is the chief supplier of these rare earth substances to the world and possesses an enormous amount of these hugely valuable natural resources.
Therefore, in industry circles, there is a feeling that this supply issue is something of a ticking time-bomb for the further development of hybrid cars. It seems that China is not over keen to open up its supply of rare earth elements to overseas interests as is shown by its placing an export quota on these vital materials. Moreover, it is believed that an overall increase in general Chinese electronic manufacturing could well consume their entire total supply within the next few years.
Aside from the political and economic wrangling that is going as a result from this, there is also a serious environmental impact that is already being felt. There are areas of northern China that resemble some kind of industrial apocalyptic battlefield as increasingly damaging methods of extraction and processing are being employed to get to these rare earths. It is hard to accept the imagery employed in the slick marketing of hybrids while one is aware of the fact that so much environmental degradation is going on in the process to extract these substances.
Nevertheless, it is unlikely that the shift to hybrid cars is going to stall as a result of this as the major manufacturers have now invested heavily into this area. There is now something of a race to find non-Chinese sources of rare earth substances, as seen in the case of the Hoidas Lake project in northern Canada and Mount Weld in Australia which is presently being developed.
The fact remains, however, that there is massive capital outlay and investment required to find these alternative sources and with an increasingly stringent environmental standards that need to be adhered to, the barriers for new players to enter this field are very high indeed. The end result of this may mean a decrease in competition to develop these fields which could be bad news for consumers of these products. Where there is a lack of competition, it generally follows that prices are higher for products which can and does have a considerable flow-on effect.
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Barriers to Greater Hybrid Uptake
- Barriers to Greater Hybrid Uptake
- Current Car Manufacturer Developments
- Hybrid Car Developments in China
- Hydrogen Power as an Alternative to the Hybrid
Written by Mark Evans
Edited by Stanley Butler
Illustrations by Julianne Harnish
Video Engineering by Aaron Peters
Video Production by IMEX Marketing
Executive Producers
International Tuition Services Ltd
Spheri Dot CA Incorporated