SDK boosts rare earth magnetic alloy production capacity in China

Japan’s Showa Denko K.K. (SDK) announced that it is increasing the rare earth magnetic alloy production capacity of Ganzhou Zhaori Rare Earth New Materials Co., Ltd., in Ganzhou, China. Capacity will increase from the current 2,000 tons to 3,000 tons per year by the end of July. Together with another subsidiary in Baotou, Inner Mongolia, the company’s rare earth magnetic alloy production capacity in China will total 4,000 tons per year with this expansion. Showa Denko produces neodymium (Nd)-based alloys for high-performance magnets that are used in the motors of hybrid cars and electric power steering devices. With regard to Nd-based high-performance magnets for automotive applications, it is necessary to add dysprosium (Dy) to ensure high magnetic force at high temperatures.  While Dy is produced from ion-adsorption ores found only in southern Chinese provinces centering on Jiangxi, the two Chinese partners in Ganzhou Zhaori Rare Earth New Materials are leading rare-earth mineral producers, having ion-adsorption ore mines and operating separation/purification and smelting facilities.  This partnership will continue to enable SDK to supply high-quality alloys in a stable manner in response to growing demand for Nd-based high-performance magnets.  Furthermore, to conserve and efficiently use rare earth resources, SDK will work to reduce Dy content in rare earth magnetic alloys. (July 7, 2011)