Lynas Corp. Ltd. (LYSCF)

[Hi_Lo]

Hitachi Automotive System: Honda, Nissan, Renault and possibly Toyota, Ford, Volkswagen - and Lynas?

https://www.google.com/amp/amp.time...hicle-joint-venture/?source=dam?client=safari

Honda and Hitachi Are Forming an Electric Vehicle Motor Company

REUTERS
FEB 7, 2017 8:30 AM EST

Honda Motor and Hitachi’s auto parts subsidiary plan to form a joint venture to develop, produce and sell motors for electric vehicles (EV), joining forces to better compete in the highly specialized “green” car segment.

“Producing motors is capital intensive, so rather than just manufacturing them for our own purposes, we would like to produce in large volumes with the possibility of supplying a variety of customers,” Honda Chief Executive Officer Takahiro Hachigo told reporters at a news briefing on Tuesday.

“In pairing up with Hitachi, we’re hoping to tap into its expertise in volume production.”

The venture will be established in July with an investment of 5 billion yen ($44.69 million), and will be 51% owned by Hitachi Automotive Systems and 49% held by Honda hmc , the two companies said.

It will build motors to be used in petrol hybrids, plug-in hybrids and battery-electric cars, and will have sales and manufacturing functions in the United States and China in addition to Japan, they said.

Hitachi Automotive Systems is a wholly owned subsidiary of Hitachi hthif and longtime supplier of components including engine and brake parts to Honda.

It counts the alliance of Nissan Motor and Renault as its biggest client, accounting for around one-third of annual sales. Other customers include Toyota Motor, Ford Motor, and Volkswagen.

https://www.google.com/amp/asia.nik...p-to-catch-up-in-e-vehicle-race?client=safari

The Japanese automaker and theHitachi unit said Tuesday they will establish a joint venture in July to develop, produce and sell motors for electric vehicles and gasoline-electric hybrids. The new company will be based in Ibaraki Prefecture and capitalized at 5 billion yen ($44.5 million). Hitachi Automotive will take a 51% interest, while Honda will have 49%.

Production facilities are to be built in the U.S. and China. The plan apparently involves selling products to major automakers such as Ford Motor and General Motors with the goal of cutting costs by pursuing economies of scale.

Hitachi Automotive brings substantial expertise to the table. The manufacturer already supplies motors for GM's Chevrolet Volt electric vehicle, as well as for cars from Toyota Motor and Isuzu Motors. The joint venture will "set itself apart from the competition" by making motors "smaller, lighter and more powerful," Hitachi Automotive President Hideaki Seki said. The partners look to build the new company into a world-class motor supplier, meeting growing demand for the components as major automakers charge up electric-car production.

Also Daido Steel and Honda have a joint venture for producing magnets without Chinese rare earths - found this (from 2006):

https://www.hitachi-metals.co.jp/e/press/pdf/2006/20060306e.pdf

Hitachi Metals, Ltd. and Daido Steel Co., Ltd. Form Comprehensive Business Alliance

http://asia.nikkei.com/Tech-Science/Tech/New-high-performance-magnet-limits-China-risk

TOKYO -- Honda Motor and Daido Electronics have developed a new method for making high-performance magnets -- used in products from electric vehicles to wind turbines and air conditioners -- that eliminates the need for rare-earth metals imported from China.

http://asia.nikkei.com/Business/Companies/Honda-ramping-up-output-capacity-for-hybrid-motors

A transmission factory in the city of Hamamatsu builds motors for such high-output hybrids as minivans and sedans, like the Accord. It had one production line for this purpose in fiscal 2015 but added a second this July and will get a third in October.

Honda began producing the North American hybrid Accord in Saitama Prefecture this May. The new lines will help meet growing demand for hybrid motors.

Hybrids accounted for just 5% of Honda's global car sales in fiscal 2015. But hybrids now dominate Odyssey sales in Japan, enjoying a 70% share in the April-July period. With emissions regulations around the world expected to tighten further, Honda is accumulating technologies for producing new motors in anticipation of stronger demand for electric vehicles.

Its Suzuka factory, in Mie Prefecture, began production Tuesday of hybrid motors for smaller cars. Honda has developed with Daido Steel a magnet that does not require such rare-earth elements as dysprosium imported almost solely from China. The automaker will look to mass-produce the motors, helping to ensure stable output of vehicles. The new motors will go into Honda's redesigned Freed minivan, due out next month.

https://books.google.com/books?id=h...v=onepage&q=sojitz hitachi rare earth&f=false

"Sojitz which imports rare earth materials to Japan for companies like Hitachi"

...and where does Sojitz get its rare earth from? Lynas.

https://www.sojitz.com/en/special/project/post-9.php

These are all Japanese companies and Lynas exports about half its rare earths to Japan - PrNd which is in permanent magnets that are in high demand for hybrid, electric vehicles, wind turbines and electronics. Japan and Lynas have helped each other break Japan's reliance on Chinese rare earths, especially after a Chinese and Japanese geopolitical standoff in 2010 involving the Japanese arrest of a Chinese ship captain. China cut off rare earth shipments to Japan. Japan Quickly let the Japanese captain go and rare earth shipments were reinstated. Japan had been looking for rare earth outside China since then and has a deal in place with Lynas.

All this and Trump's proposed 45% Chinese tariff will make 2017 a very interesting year for Lynas.