A Saskatchewan-based mining company has signed a letter of intent with Toyota to explore an area near Bathurst, N.B., for elements used in hybrid vehicles.

'What we've seen so far from the surface sampling we've done is quite promising, which is why we are involved there and it's certainly one of the reasons why Toyota liked the project.'— Gary Billingsly, Great Western Minerals Group

Saskatchewan's Great Western Minerals Group is exploring the Benjamin River area for deposits of rare earth elements, which the company hopes can meet the growing demand for the minerals as more companies are producing hybrid cars.

"The heavy rare earth, which this Benjamin River project is enriched in, are very important for the permanent magnets that are used in the electric motors that go into hybrids," said Gary Billingsley, the executive chairman of Great Western Minerals Group.

He said the elements are now produced mainly in China but there are concerns the country could block exports of them in the future. That fear has companies, such as Toyota, seeking secure supplies elsewhere.

Great Western Minerals is one of the groups Toyota could partner with to secure these elements in the future for their products.

Billingsley said his company is still in the early exploration phase but the initial signs have been encouraging.

"What we've seen so far from the surface sampling we've done is quite promising, which is why we are involved there and it's certainly one of the reasons why Toyota liked the project," he said.

Even if that sampling project is successful, an actual mining operation would still be several years away.

Geologists aware of elements for decades

Geologists have known about occurrences of rare earth elements near Bathurst for decades.

But there wasn't much interest in drilling for them until now, according to Jim Walker, a geologist with the Department of Natural Resources.

"People only get excited about it when the value goes up to make it worth mining," Walker said.

"We've known about this occurrence for a long time, but it's only with the advent of battery-driven cars, where they need these super-efficient batteries to make it worth their while."