Daido Steel, Mitsubishi Corp., Molycorp to Launch NdFeB Magnet JV

Daido Steel and Mitsubishi Corporation announced on Tuesday they and US rare earth producer, Molycorp launch joint venture to make next generation rare earth magnet. They build new plant in Nakatsugawa, Gifu where Daido Steel has rare earth magnet making plant. The joint venture is licensed intellectual properties from Japanese venture capital to start mass production at around 500 tonnes per year by January 2013. The firm suppliers the products for automobile and appliances while the firm eyes US plant in future.

Daido Steel and Mitsubishi Corp. has 34.5% share each in the joint venture with 30% share by Molycorp. The joint venture makes neodymium-iron-boron (NdFeB) permanent rare earth magnet to supply for motor of hybrid vehicle and electric vehicle and energy saving appliances. They already have preliminary contract with major automaker to supply dysprosium saving magnet.

Dr. Masato Sagawa led venture capital, Intermetallics licenses the intellectual properties for the joint venture. The president of Dr. Sagawa developed NdFeB sintered magnet when he worked for former Sumitomo Special Metals, which is now unit of Hitachi Metals.

Molycorp supplies rare earth for the joint venture when Molycorp is building new refinery. The firm starts production at annual 19,500 tonnes in April 2012 and expands the capacity to 40,000 tonnes in 2013. The firm acquired Japanese magnet alloy maker, Santoku Corporation’s US subsidiary to enter into alloy production. Molycorp sought joint venture partner for magnet production after the firm gave up potential joint business with Hitachi Metals. Molycorp now can cover a series of chain from rare earth to magnet production.