Molycorp (MCP) Enters NdFeB Rare Earth Magnet Joint Venture
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Molycorp, Inc. (NYSE: MCP) (Molycorp), Daido Steel Co., Ltd. (Daido), and Mitsubishi Corporation (Mitsubishi) today announced the formation of a joint venture to manufacture and sell next-generation neodymium-iron-boron (NdFeB) permanent rare earth magnets.
The joint venture will manufacture sintered NdFeB permanent rare earth magnets with technology licensed from Intermetallics, Inc., a partnership between Mitsubishi, Daido, and Dr. Masato Sagawa, co-inventor of the NdFeB magnet. The capital contribution ratio of the newly formed company will be 30.0% by Molycorp, 35.5% by Daido, and 34.5% by Mitsubishi. The joint venture will be financed by the three shareholders and by a government subsidy sponsored by Japan’s Ministry of Economy, Trade, and Industry (METI).
The joint venture plans to construct an initial 500 metric-ton-per-year magnet manufacturing facility in Nakatsugawa, Japan (Gifu Prefecture), with operations expected to commence by January 2013. The companies expect to begin work on the new facility next month and eventually expand operations in the U.S. and elsewhere.
The joint venture will manufacture sintered NdFeB permanent rare earth magnets with technology licensed from Intermetallics, Inc., a partnership between Mitsubishi, Daido, and Dr. Masato Sagawa, co-inventor of the NdFeB magnet. The capital contribution ratio of the newly formed company will be 30.0% by Molycorp, 35.5% by Daido, and 34.5% by Mitsubishi. The joint venture will be financed by the three shareholders and by a government subsidy sponsored by Japan’s Ministry of Economy, Trade, and Industry (METI).
The joint venture plans to construct an initial 500 metric-ton-per-year magnet manufacturing facility in Nakatsugawa, Japan (Gifu Prefecture), with operations expected to commence by January 2013. The companies expect to begin work on the new facility next month and eventually expand operations in the U.S. and elsewhere.
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