Raw Materials Shortage
See also: Rare earth metals availability and supply securityThe rare earth element dysprosium is required to fabricate many of the advanced electric motors and battery systems in hybrid propulsion systems.
However, nearly all the rare earth elements in the world come from China, and one analyst believes that an overall increase in Chinese electronics manufacturing may consume this entire supply by 2012. In addition, export quotas on Chinese rare earth exports have resulted in a generally shaky supply of those metals.
A few non-Chinese sources such as the advanced Hoidas Lake project in northern Canada and Mt Weld in Australia are currently under development, however it is not known if these sources will be developed before a shortage hits.
Read more about this topic: Hybrid Electric Vehicle
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—Chinese proverb.