Industry Bulletin: Molycorp Minerals and Arnold Magnetic Technologies Announce JV to Manufacture Rare Earth Magnets in the U.S.
July 17, 2009
In our ongoing efforts to provide you with broader communications and industry information, we are pleased to issue another Industry Bulletin discussing recent trends in the markets of various rare and strategic metals. In this edition, we report on recent developments in the North American rare earth and permanent magnet sectors that underline a new trend toward supply chain integration amid ongoing concerns about its adequacy to serve the Green Technology boom in North America.
On July 13, 2009, Molycorp Minerals Inc (‘Molycorp') and Arnold Magnetic Technologies Corp. ("Arnold") announced that they have signed a Letter of Intent to form a Joint Venture for the production of rare earth (neodymium-iron-boron or "Neo") magnets in the United States. Details of the proposed Joint Venture were not disclosed.
Mark A. Smith, CEO of Molycorp noted in the announcement that, "Working with Arnold is a key step in Molycorp's strategy of going from mining to magnets. This Joint Venture with Arnold will provide Molycorp with access to the technology, people and facilities to take the rare earth materials produced by Molycorp at its Mountain Pass, California operation and convert them into the high performance (Neo) permanent magnets required for the production of hybrid and electric cars, wind power turbines, high-tech applications and numerous advanced defense systems, on which our nation's economy, security and future depend."
Molycorp is a privately-held U.S.-based rare earth producer and technology company that owns the rare earth operations in Mountain Pass, California. Molycorp also maintains a joint venture with Sumitomo Metals, called Sumikin Molycorp, which markets rare earth products in Asia and produces permanent magnet materials in Japan.
Arnold, with its headquarters in Rochester, New York, is a private company with six facilities in the United States producing permanent and bonded magnets, precision assemblies, reprographic assemblies, electromagnets and ultra-thin foils for magnetic and non-magnetic applications. For the full announcement and anticipated arrangements, please follow:
How Avalon´s Lake Zone REE deposit at Thor Lake, NWT will factor into this global trend towards consolidation of the rare earth elements supply chain remains to be seen. Its exceptional size and strong enrichment in the heavy rare earths such as dysprosium and terbium, which are critical to many permanent magnet alloy compositions, are becoming more apparent to the market, and as such, it will surely attract increasing attention from the major players both in North America and in Asia. Avalon remains financially strong, and recent work programs on its Lake Zone REE deposit continue to generate positive results. The future looks bright for one of the few advanced rare earth elements projects in the world.
If you have any comments or questions on any of the other rare metals, please do not hesitate to post them on the www.raremetalblog.com or feel free to contact the company directly at