Honda says its process move is a world-first - in that its decision does not merely involve a research experiment but rather a process that will be done on a mass production basis at a central recycling plant. The recycling will start very soon; Honda says the work is to begin at the end of this month. The process allows for the recovery of more than 80% of the rare-earth metals used in the nickel-metal hydride batteries. The process involves extractions coming from used batteries from Honda hybrids at Honda dealers inside and outside Japan.

China produces about 95% of the world's rare earth supplies. With its monopoly on production, China, noting its concerns about the environment and resources, issued export controls, which sent prices rising. For Honda, the goal was specifically to look to recycling to meet its rare-earth metal needs. Honda says the initiative will not stop at batteries either. It intends to grow out a list of components from which the metals can be recycled.