To curb that exposure, Japanese firms are developing heavy-rare-earth-free neodymium magnets and ramping up investment to bring them into mass production. Proterial Ltd., formerly Hitachi Metals Ltd., announced in late July that it has developed a heavy–rare-earth–free neodymium magnet for EV traction motors. By tightly controlling impurities, the company reports that it has achieved performance suitable for EV motors. The product can be used for hybrids as well. Proterial is eyeing mass production in Kumagaya, Saitama Prefecture, and Yabu, Hyogo Prefecture. Daido Steel Co. has already commercialized heavy–rare-earth–free neodymium magnets for hybrids. Its proprietary grain-refinement process produces much finer crystal grains, while reportedly markedly improving heat resistance and overall magnetic properties. Honda Motor Co. became the first to adopt the magnets for hybrids in 2016. Daido Steel reports that inquiries for hybrid and EV applications have recently increased from automakers in Japan and the United States.