Siemens and the Australia-based Lynas Corporation have signed a Letter of Intent to establish a joint venture for producing neodymium-based rare earth magnets.
Neodymium magnets are made of an alloy comprising neodymium, iron and boron.
Siemens requires the magnets for the making energy-efficient drive applications and wind-turbine generators.
Lynas will provide raw materials to the joint venture, predominantly metals containing neodymium, through long-term supply contracts. The partnership will secure a sustainable end-to-end supply chain from mine-to-magnet to end application.
Siemens will hold 55 per cent stake and Lynas the rest in the joint venture.
Mr Ralf-Michael Franke, Chief Executive Officer of the Siemens Drive Technologies Division, said, “This planned joint venture has strategic importance for us to secure a long-term and stable supply with high performance magnets. We are convinced that Lynas is the right partner for this.”
Lynas Executive Chairman, Mr Nicholas Curtis, said, “It is clear that rare earths magnets have tremendous growth potential in this field, and Lynas is pleased to be able to provide the necessary ingredients of a stable, secure, economically and environmentally sound supply chain which is required to enable this market to grow to its full potential.”
The Siemens Drive Technologies Division is a global supplier of the entire drive train with electrical and mechanical components.
Siemens said Lynas is an ASX 100 listed company, executing its strategy to create a reliable, fully integrated source of Rare Earths from mine to market. Lynas is setting a new benchmark for the security of supply and environmental standards in the global Rare Earths industry. The recently completed review of the International Atomic Energy Agency has confirmed that the Lynas plant in Malaysia, once completed later this year, is expected to be fully compliant with international standards.