Siemens and the Australian Lynas
Corporation Ltd 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 windturbine
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 per cent
Siemens and 45 per cent 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."
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. 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.