The US Department of Defense and Japanese car maker Toyota Motor (TM.NYSE, 7203.TYO) plan to develop North American rare earth mines, with the hope of reducing reliance on China as a source of the metals, Bloomberg reported. Rare earths are used in the production of a wide range of equipment from military drones to wind turbines. Toyota Tsusho, Toyota’s trading unit, has inked a joint venture with Canadian company Matamec Explorations (MAT.CVE, NHF.FRA). The Japanese company has a 49% shareholding in the venture and is providing funds for the exploratory study in Quebec. In October, the US initiated a partnership with Canadian company Ucore Rare Metals (UCU.CVE, U9U.FRA) to explore new mines, the company said. China reduced exports of rare earths in 2010 to retain the materials for its own use. The measures have forced foreign consumers to find different metals sources.
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