http://news.yahoo.com/s/afp/20100930/sc_afp/japantechnologyautochinacommodities_20100930145608
Kenji Kobayashi, of NEDO, said "ferrite magnets are very cheap as they are mostly iron."
Ferrite magnets are weaker than magnets made from rare earths such as neodymium and dysprosium, which are both imported from China, but sell at only one 20th of their price, he told AFP by telephone.
"Magnets are placed differently in the new motor so that their attraction power does not escape," Kobayashi said, adding however that it would take years to put the technology to practical use.
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