Billy Steele, writing for Engadget on Honda's new hybrid motor, which they built in collaboration with Daido Steel:
The new motor doesn't use heavy rare earth metals like dysprosium and terbium, instead relying on magnets from Daido Steel that cost 10 percent less and weigh 8 percent lighter than the previous components.
Hybrids are going to be an ever-important step toward auto's step to electrification, since large batteries still cost a lot and developing nations have more access to petroleum based fuels than they do steady electricity supplies. reducing dependence on Rare Earth metals goes a long way into bringing the cost of these devices down.
Steele also mentions that without the need for these metals, Honda doesn't have to negotiate with China, which holds most of the rare earth metal reserves. A positive political externality for Japan, perhaps, but an even more positive externality for the price of these metals, which should become more accessible as the price diminishes.