Siemens Signs 10-Year Rare Earths Deal with Molycorp of U.S.

Rare Earth Deposits & Mining / Rare Earth Exploration, Mining, Processing, & Uses

Date posted: 04/19/15

Andrew Lee reports that Siemens has tapped U.S.- based rare-earths specialist Molycorp to supply materials for use in its direct-drive wind turbines. The German group will be supplied under a 10-year deal from the Molycorp facility in Mountain Pass, California. Like other wind OEMs that produce direct-drive turbines, Siemens relies on supplies of rare-earth metals needed for permanent-magnet generators. Supplies of the materials are dominated by China, which for many years kept a tight rein on their availability via export quotas, and had the power to send foreign users into a panic over availability and pricing. In response, Western manufacturers have made a determined effort to seek alternative sources, easing the China grip on the market, a grip further loosened when China dropped export quotas this year following a ruling by the World Trade Organization. Morten Rasmussen, head of technology of the Siemens Wind Power and Renewables Division said that Molycorp strives for diversification in the sourcing of these components to improve independency from specific markets, and that a key part of the agreement was the environmental processes put in place at Mountain Pass by Molycorp.