Siemens and Lynas Establish Joint Venture for Magnet Production for Wind Turbine Generators (Germany)

Siemens and the Australian Lynas Corporation Limited have signed a letter of intent to establish a joint venture for the production of neodymium based rare earth magnets. Siemens requires this kind of magnets for the production of 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. The planned shareholding of the joint venture for magnet production is 55 percent Siemens and 45 percent Lynas. The details for the planned joint venture are currently being developed.

Ralf-Michael Franke, CEO of the Siemens Drive Technologies Division, stated: “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, Nicholas Curtis, said: “Lynas is delighted that this first step is achieved to entering a long term partnership with Siemens, the market leader in their field of large drive technology. 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 the world’s leading supplier of the entire drive train with electrical and mechanical components. Lynas is an ASX 100 listed company, executing its strategy to create a reliable, fully integrated source of Rare Earths from mine through 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.

[mappress]

Source: Siemens, July 08, 2011;