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Hitachi Enters into Rare Earth Supply Agreement with Molycorp
08/15/2011 - Hitachi Metals, Ltd. has entered into master supply agreement with Molycorp, Inc. for the supply of rare earth materials for neodymium magnets.
Hitachi Metals, Ltd. has entered into master supply agreement with Molycorp, Inc. for the supply of rare earth materials for neodymium magnets.
Molycorp holds controlling interests in the Mountain Pass mine in California, one of the richest rare earth mines in the world. The new agreement allows Hitachi Metals to promote the steady procurement of rare earth materials for neodymium magnets.
Hitachi Metals noted that the company has decided not to set up a previously contemplated joint venture with Molycorp for the manufacture of alloys for neodymium magnets and neodymium magnet products. The decision was made after reevaluating its business strategy.
Hitachi Metals will now study the possibility of manufacturing neodymium magnets on its own in the United States to meet increasing demand for neodymium magnets in North America and Europe, mainly for use in hybrid vehicles and electric vehicles. Growth in hybrid cars and electric vehicles, which is driven by stricter environmental controls and soaring crude oil prices, is expected to fuel continued growth in demand for neodymium magnets. For the company, meeting the increasing demand for magnets requires building a supply chain in which rare earth materials are steadily procured and neodymium magnets are reliably supplied.
Hitachi Metals has built a solid position as a manufacturer of materials and components, developing businesses in broad range of industrial fields. Since the company’s founding in 1910, its management philosophy has been to contribute to society by embodying the optimum corporate performance.
