Hitachi Metals and Molycorp to set up rare earth joint venture

Hitachi Metals and Molycorp to set up rare earth joint venture
Hitachi Metals, Ltd. and Morlycorp, Inc. agreed to set up a joint venture to produce rare earth alloys and magnets in the US, the two companies said on Dec 21st.
The venture plans to start in early April 2011, and it will be focused on the manufacture of neodymium-iron-boron alloys and magnets, which are vital to clean technology, automotive, computer, health care, communications and other technologies.
The decision came amid the concern in the industry about the exports control on these minerals in China, who controls about 97 percent of world’s rare earth supply. US and Japan are among the largest users of rare earth minerals.
“These joint ventures are an integral part of Molycorp’s ‘mine-to-magnets’ business plan, and they move our company and the United States one step closer to realizing the strategic goal of re-esablishing a complete rare earth manufacturing supply chain in the US,” said Mark Smith, Molycorp’s Chief Executive Officer.
Molycorp, based in Colorado, is the only rare earth oxide (REO) producer in the western hemisphere. It currently produces about 3,000 metric tons of commercial rare earth materials per year. It plans to expand its processing facility at Mountain Pass, California and produce 20,000 metric tons of REO per year by the end of 2012.
“We are well positioned to satisfy the growing demand from global customers for these rare earth magnets,” said Nobuhiko Shima, President of NEOMAX Company of Hitachi Metals, Ltd, the world’s top manufacturer of NdFeB magnets.