Hitachi Metals, Molycorp to Launch Study for US Nd Alloy, Magnet JV

Hitachi Metals announced on Tuesday the firm started study for potential neodymium magnet alloy making joint venture with US rare earth miner, Molycorp. They also study potential joint venture to expand production of neodymium magnet for electric vehicle and hybrid vehicle. Hitachi Metals expects the firm reaches joint venture agreement for the alloy making and magnet making plants in January-March 2011 to launch the joint ventures by second half of 2012.

Hitachi Metals decided to secure stable supply of neodymium alloy for the magnet and to expand production of the magnet by establishing integrated supply chain from mining to magnet making in USA through tie-up with Molycorp, which has world class rare earth mine, Mountain Pass in California. Hitachi Metals tries to meet growing demand for the magnet when US consumption of the magnet will increase for electric and hybrid vehicle, wind power generation and industrial motor.

Hitachi Metals is world top neodymium magnet maker with around 50% world market share except for Chinese market. The firm tries to meet growing demand worldwide by stabilizing the supply of the materials.

Neodymium magnet demand increases for electric and hybrid vehicle and industrial machinery due to the high magnetic property. Hitachi Metals developed the magnet and started the mass production for the first time in the world. Neodymium is critical for the neodymium-iron-boron magnet.