Ann: Further Economic Framework Agreement Update, page-42

Rare earths aren't required for batteries (which need a cathode - lithium, plus some combination of nickel, manganese, cobalt, aluminium, or iron phosphate - and anode, typically graphite, potentially other materials like lithium titanate, tin/cobalt alloys, or silicon/carbon). They're necessary for compact and light, but high strength, permanent magnets, which are what you need if you're going to maximise efficiency; and the magnets are necessary for any type of electric vehicle (be it battery or fuel cell; the latter is what Toyota has been focusing on to date.)

In other words, Toyota shifting focus to battery EVs doesn't alter the rare earth landscape in any significant way. The requirements will be pretty much identical to what they would have been had Toyota stuck with the hydrogen fuel cell path (which I believe they're not abandoning - just doing in parallel with BEVs).

You can also get away without rare earths (eg: induction motors) if you're willing to sacrifice a bit of efficiency.

Mind, I consider this announcement from Toyota to be hugely significant. Just not for the rare earth market specifically.