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Rhodia and China Rare Metals and Rare Earth Co., Ltd. sign a strategic cooperation agreement on rare earth business

Rhodia (member of the Solvay Group) and China Rare Metals and Rare Earth Co., Ltd. (part of Aluminum Corporation of China, CHINALCO) have signed a letter of intent to develop opportunities in the global rare earth business. According to this agreement, the two companies will develop a strategic cooperation in rare earth supply, technology and market development by leveraging both parties’ competitive advantages in the value chain.

China Rare Metals and Rare Earth Co., Ltd. is the wholly-owned subsidiary of CHINALCO aiming at integrating and developing the rare earth industry in China. CHINALCO has structured its rare earth business in such a way that it has backward integration in ore in Guangdong and Guangxi Province as well as rare earth separation units located in Jiangsu Province.

It also owns an R&D center at GRIREM Advanced Materials Co., Ltd. CHINALCO’s ambition is to become a global leader with Chinese characteristics in the rare earth industry by leveraging its core competencies and developing high-end technologies.

Rhodia Rare Earth Systems, a global business unit of the Solvay group, is a global leader in rare earth-based specialty chemicals. It supports the automotive, lighting and electronics industries and is a leading provider of performance materials to the automotive catalysis market. It also produces a variety of rare earth-based luminophore powders used in energy-efficient light bulbs or high-precision polishing powders for the electronics market. It operates five production plants worldwide; two are located in China where the GBU develops downstream high-end application materials.

Comments

HarveyD

Toyota has found the (heavy) rare Earths that it was looking for and formed a JV (49% - 51%) with the new Canadian Mine owners for mining extraction by 2014. The oxide produced will be further refined in another place to be identified latter. There are a few rare Earths mines in the area and a collective type refinery could be a possible solution.

Rare Earths shortages is a temporary situation that will be solved with the opening of a dozen new mines by 2015.

Reel$$

Perhaps renaming them "Not-so-rare-Earth."

HarveyD

Reel$$...you may be right.

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