Daido Steel Co., Mitsubishi Corp. and Molycorp Inc. have agreed to establish a joint venture in Nakatsugawa, Gifu Prefecture, to manufacture and sell the next-generation of what is considered the world's most powerful permanent magnet.
Daido will own 35.5 percent of the newly formed company, Mitsubishi will own 34.5 percent, and Molycorp will have a 30-percent stake.
The plant will produce a new Neodymium Iron Boron (NdFeB) sintered magnet. Operations are scheduled to start by January 2013, with an initial annual production capacity of 500 tons.
The business of the new company will be financed by the three shareholders and a government subsidy sponsored by the Ministry of Economy, Trade and Industry under the rare earth supply measures program.
The NdFeB magnet contains such rare earth materials as neodymium and dysprosium, and is a key component for high performance motors in electric and hybrid vehicles, as well as compressors for air conditioners and wind power generators.
Demand for the magnets is expected to increase with the growth of environmentally friendly technologies.
Rare earth materials from Molycorp's mine in Mountain Pass, California, will be used in the manufacturing process.
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