Hitachi Metal Plans To Start Neodymium Magnet Production Line in China in 2022

Hitachi metal plans to start a low-cost neodymium magnet production line for electric vehicle (xev) motors in China in 2022 and start mass production in 2023. In addition to not using or curbing the use of heavy rare earth materials, its manufacturing methods will also be reformed. The company will improve its equipment utilization rate and reduce personnel costs through automation. By increasing the proportion of overseas production, Hitachi Metals will increase the adjusted operating profit margin of its magnetic materials and electronics business from 2.4% in 2020 to 11.2% in 2022. The company will enhance its competitiveness through large-scale production of low-cost production lines in China, a resource rich country.

This low-cost production line will be established in Hitachi metal Sanhuan magnetic materials (Nantong) Co., Ltd., in which Hitachi metal holds 51% of the shares. The company has been producing neodymium magnets on a large scale and will meet the growing demand for xev at a lower cost. Magnet production process includes melting raw materials, sintering, heat treatment, cutting, etc. The low-cost production line will be installed next to the existing production line.

In Japan, low-cost production has proved feasible experimentally. At present, Hitachi Metals is continuing to demonstrate large-scale production in China. In order to switch to the new production line, the company will start to verify with customers whether the process meets their requirements in terms of output and quality.

Qin magnet is one of rare earth magnets. Before the construction of the new production line, Hitachi Metals is phasing out or reducing the use of heavy rare earth materials such as dysprosium and Tomahawk in response to procurement and price risks. The design and manufacturing methods of magnet materials will be improved at any time, but whether and to what extent they will be used will be decided by the customer.

Over the past few years, Hitachi Metals has been rebuilding its magnetic materials business. The sluggish demand and profitability of this business with other producers of rare metals have led to the deterioration of the global economy.

In addition to China, the company has production bases in Xionggu City, kuoyu County, adoptive father City, Hyogo County, the Philippines and other places. The saga base will be closed at the end of March 2022.

Due to the recovery of automobile production and the popularity of xev for decarbonization, the business is currently in the recovery stage. Hitachi metal executives said: "the business restructuring will end in March 2022". In addition to material processing, the company plans to further improve the strength of China's production base in order to win a place in the global competition.