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Low and-zero dy-magnet_update_toronto_v16 - 1135
1. ‹#›
Presented to:
By:
Date:
The New Landscape for Rare
Earth Permanent Magnets
U.S.-Sourced Feedstock
Secure Supply Chains
Long-Term Price Visibility
Less Reliance on “Heavy” Rare Earths
2. ‹#›2
Safe Harbor Statements
This presentation contains forward-looking statements within the meaning of
the federal securities laws. These forward-looking statements represent
Molycorp's beliefs, projections and predictions about future events or
Molycorp's future performance. Forward-looking statements can be identified
by terminology such as “may,” “will,” “would,” “could,” “should,” “expect,”
“intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,”
“continue” or the negative of these terms or other similar expressions or
phrases. These forward-looking statements are necessarily subjective and
involve known and unknown risks, uncertainties and other important factors
that could cause Molycorp's actual results, performance or achievements or
industry results to differ materially from any future results, performance or
achievement described in or implied by such statements.
Factors that may cause actual results to differ materially from expected
results described in forward-looking statements include, but are not limited
to: the potential need to secure additional capital to implement Molycorp's
business plans, and Molycorp's ability to successfully secure any such
capital; Molycorp's ability to complete its planned capital projects, such as its
modernization and expansion efforts, including the achievement of an initial
run rate of 19,050 metric tons at its Mountain Pass, California rare earth
mine and processing facility (the “Molycorp Mountain Pass facility”), and
reach full planned production rates for REO and other planned downstream
products, in each case within the projected time frame; the success of
Molycorp's cost mitigation efforts in connection with its modernization and
expansion efforts at the Molycorp Mountain Pass facility, which, if
unsuccessful, might cause its costs to exceed budget; the final costs of
Molycorp's planned capital projects, which may differ from estimated costs;
Molycorp's ability to achieve fully the strategic and financial objectives
related to the acquisition of Neo Material Technologies, Inc. (now Molycorp
Canada), including the acquisition's impact on Molycorp's financial condition
and results of operations; foreign exchange rate fluctuations; the
development and commercialization of new products; risks and uncertainties
associated with intangible assets, including any future goodwill impairment
charges; unexpected actions of domestic and foreign governments; various
events that could disrupt operations, including natural events and other
risks; uncertainties associated with Molycorp's reserve estimates and non-
reserve deposit information, including estimated mine life and annual
production; uncertainties related to feasibility studies that provide estimates
of expected or anticipated costs, expenditures and economic returns, REO
prices, production costs and other expenses for operations, which are
subject to fluctuation; uncertainties regarding global supply and demand for
rare earths materials; uncertainties regarding the results of Molycorp's
exploratory drilling programs; Molycorp's ability to enter into additional
definitive agreements with its customers and its ability to maintain customer
relationships; Molycorp's sintered neodymium-iron-boron rare earth magnet
joint venture's ability to successfully manufacture magnets within its
expected timeframe; Molycorp's ability to maintain appropriate relations with
unions and employees; Molycorp's ability to successfully implement its
vertical integration strategy; environmental laws, regulations and permits
affecting Molycorp's business, directly and indirectly, including, among
others, those relating to mine reclamation and restoration, climate change,
emissions to the air and water and human exposure to hazardous
substances used, released or disposed of by Molycorp; uncertainties
associated with unanticipated geological conditions related to mining; and
the outcome of stockholder class action litigation, derivative litigation and a
pending SEC investigation, including any actions taken by government
agencies in connection therewith.
For more information regarding these and other risks and uncertainties that
Molycorp may face, see the section entitled “Risk Factors” of the Company's
Annual Report on Form 10-K for the year ended December 31, 2012. Any
forward-looking statement contained in this presentation reflects Molycorp's
current views with respect to future events and is subject to these and other
risks, uncertainties and assumptions relating to Molycorp's operations,
operating results, growth strategy and liquidity. You should not place undue
reliance on these forward-looking statements because such statements
speak only as to the date when made. Molycorp assumes no obligation to
publicly update or revise these forward-looking statements for any reason,
or to update the reasons actual results could differ materially from those
anticipated in these forward-looking statements, even if new information
becomes available in the future, except as otherwise required by applicable
law.
3. ‹#›3
Main Points
In the past two years, rare earth price volatility, lack of supply security, and concerns
over “heavy” rare earth availability have discouraged manufacturers from using RE
permanent magnets and encouraged them to find alternatives, which can increase
energy usage and degrade performance.
1
2
3
4
Additionally, engineering advances and new economic realities are bringing
manufacturers back to rare earth magnets. NdFeB magnets that contain little-to-no
Dysprosium (Dy) can meet or exceed the performance of traditional sintered magnets
with high Dy content (8-10%) for applications that operate in higher temperature
environments.
However, production of magnetic rare earths outside of China is now growing rapidly,
which is driving greater long-term supply of RE permanent magnets. New, vertically
integrated supply chains outside of China can now offer flexible entry points, security
of supply, pricing visibility, and long-term contracts.
Demand is growing for higher efficiency motors as a result of rising energy efficiency
standards and consumer demand for smaller, lighter, and more energy efficient
products. Rare earth (RE) permanent magnets help reduce motor size, weight, and
energy consumption to better meet these regulatory and market demands.
5. ‹#›5
Lifecycle Costs
The Power of Rare Earth Magnets in Motors
By replacing Ferrite magnets in motors with:
Consumption
of natural
resources
You can
REDUCE:
Power
Consumption
CO2 and other
Emissions
By 10%
Dependence on
Liquid Fossil Fuels
Weight and Size
RE motor vs. Ferrite based
motor
6. ‹#›6
Clean Energy
The Power of Rare Earth Magnets in Motors
Rare Earth magnets help make
technologies more effective and
more efficient.
Aerospace
Automobiles
High-Efficiency
Motors for
Energy-Efficient
Homes
Computing &
Network
Technologies
7. ‹#›7
The use of
can help achieve energy
efficiency savings of up to
Percentage of global power
consumption by
GLOBAL POWER CONSUMPTION
Global Energy Savings Potential of RE Magnet Motors
* Source: 2011 International Energy Agency analysis
** Source: Mitsubishi Corporation.
Electric
Motors
45%
All Other
Consumption
55%
*
GLOBAL POWER CONSUMPTION
**
9. ‹#›9
2010 – 2012
Prior to 2010
Manufactures Increasingly Designing
Products with Rare Earth Magnets
Past Challenges of Rare Earth Magnet Use
Low and Relatively Stable
Rare Earth Prices
Reliability of Rare
Earth Supplies was
Less of a Concern
than Today
Supply Constraints &
Shortages
Limited
Supply
Options
Rare Earth Prices Highly Volatile
Manufacturers
Dissuaded from Rare
Earth Magnet Use
Rare Earth Magnets
Cost-to-Performance
Ratio Was Steadily
Improving
P
C
A Period of Increased Risk
for Magnet Users
10. ‹#›10
New Supplies Coming
Online Outside
China
Outside
2013: Rare Earth Supply Situation is Greatly Improving
Global Rare Earth Supply
Landscape is Greatly Improving
2013
Long-Term
Supply
Agreements
Lynas
Others
over the
long-term
Visibility Into
Pricing
Less
Dependence
on Heavy REs
(Dy)
Security of
Supply
12. ‹#›12
-10.0
-8.0
-6.0
-4.0
-2.0
0.0
75 100 125 150 175
IrreversibleFluxLossafter1hr(%)
Temperature (oC)
-10.0
-8.0
-6.0
-4.0
-2.0
0.0
75 100 125 150 175
IrreversibleFluxLossafter1hr(%)
Temperature (oC)
Low-to-Zero Dysprosium NdFeB Magnets
MQ1 MQ3 MQ2
Zero-Dy Bonded Magnets
• Cost-effective replacement for iron-based
(ferrite) magnets
• Allows for smaller/lighter motors
• Helps vehicles meet higher fuel efficiency
and performance standards
• Made from abundant Mountain
Pass, California rare earth ore
Hot-Pressed, Fully Dense Magnets
With Zero-Dy Content
• Provides a 4-7% “Dy advantage” over
sintered NdFeB magnets
• Excellent magnetic properties at temps
of up to 200°C with zero Dy
• Made from abundant Mountain
Pass, California rare earth ore
Hot-Pressed, Fully Dense Magnets
With Low-Dy Content
• 2-4% “Dy advantage” over sintered
NdFeB magnets
• Excellent magnetic properties at temps
of up to 180°C with little Dy
• Made from abundant Mountain
Pass, California rare earth ore
Excellent thermal stability
20
30
40
50
60
70
0 20 40 60
Efficiency(%)
Torque (mNm)
Motor with Ferrite Magnet
Motor with MQ1 Magnet
Allows for higher efficiency
PC=2, Uncoated Magnets
Typical MQ3 grade with low Dy (2%) MQ2-14-150 grade with 0% Dy
13. ‹#›13
Low-to-Zero Dysprosium NdFeB Magnets
MQ magnets (MQ1, MQ2, and MQ3) fill the gap between fully dense
anisotropic sintered neo magnets and sintered ferrite magnets
MQ magnets, with only very limited exceptions, contain no heavy rare
earths such as Dy or Tb.
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
-2000 -1600 -1200 -800 -400 0
J(T)
H (kA/m)
Sintered
Neo (43SH)
MQ3
MQ1
Sintered
Ferrite
MQ2
14. ‹#›14
The MQ2 and MQ3 Dysprosium (Dy) Advantage
Smaller grain size improves HcJ, so less Dy needed
MQ3 grain size is 20X smaller than traditional sintered NdFeB magnet
MQ2 grain size is 100x smaller than traditional sintered NdFeB magnet
MQ3 vs. traditional sintered (2-4% less Dy at a given temperature)
MQ2 vs. traditional sintered (4-7% less Dy at a given temperature)
1 Micrometers ( m) = 1000 Nanometers (nm)
Sintered Neo
10µm 1µm 0.5µm
MQ3 MQ2
15. ‹#›15
• High-Performance, Low-Dy Sintered Magnets: Intermetallics Japan is now producing
next-generation, high-performance sintered NdFeB magnets with 50% or less dysprosium
content than traditional sintered magnets. IMJ recently has developed high-performance
Dy-free sintered NdFeB magnets.
• Abundant Feedstock: Magnetic rare earths are sourced from Molycorp‟s world-class rare
earth facility in Mountain Pass, California
• Target markets: Automotive and home appliance sectors
High-Performance, Low-Dy Sintered NdFeB Magnets
High Magnetic
Performance
• GBD (Grain
Boundary
Diffusion) and
fine powder
technology
yields higher
magnetic
properties and
magnet
performance.
Cost Advantages
• Higher
production yield
(80~90%)
• Less heavy rare
earth (Dy & Tb)
content for lower
cost and price
stability.
• Zero-Dy sintered
magnets
Superior Quality
• Quality
assurance is
overseen by one
of the world’s
leading
producers of
high-end rare
earth permanent
magnets: Daido
Steel.
Stable Feedstock
Sourcing
• Magnetic rare
earth feedstock
comes from the
world-
class, high-
tonnage rare
earth deposit of
Molycorp’s
Mountain
Pass, California
facility.
Strong Global
Alliance
• Research and
development
capabilities of
Intermetallics
Co. Ltd.
combined with
strategic
alliances with
Daido
Steel, Mitsubishi
Corporation and
Molycorp.
IMJ’s Next-Generation, Low-Dy Sintered NdFeB Magnets
16. ‹#›16
Approaches to Dy-diffusion by the top Japanese Sintered Magnet Makers
Dy-vapor diffusion
technique, where thin sintered
magnets are thermally treated in
Dy-vapor environment
Hitachi is currently running a
sample evaluation program with
key customers and expects full
commercialization of the series
with new Dy-reduction
technologies in 2014.
A number of different grain boundary diffusion techniques have been
reported by the various Japanese sintered magnet manufacturers.
Blending Dy2O3 powder with the
NdFeB powder and combining the
sintering and Dy-diffusing stages.
Also discussed treating Dy-coated
sintered magnets.
Savings in Dy: 20-50% less Dy
Coating 1-5mm thin magnets with
Dy2O3 and DyF3 slurries and
heating these coated magnets for
1-10 hours at 800-900oC
Savings in Dy: 60% from original
Can be found in new Nissan Leaf
2012 model
Traditional method
Dy Diffusion
18. ‹#›18
Permanent Magnet
Motors
Vs.
Induction Motors
Motors with
MQ1 Magnets
Vs.
Motors w/Ferrite Magnets
Motors with
Zero-Dy MQ2 Magnets
Vs.
Sintered Neo Magnets w/Dy
The Benefits of Using Rare Earth Permanent Magnet Motors
Higher
• Energy Efficiency
• Dynamic Performance
• Operational Efficiencies
• Continuous Torque
• Bearing Life
Lower
• Lifecycle Costs
• Size & Weight
• Noise & Vibration
• Operating Temperature
• Current
• Ramp-up Time
Induction Motor (left) versus
comparable permanent magnet
motor Ferrite magnet-based motor (left)
versus comparable MQ1 motor
• Lifecycle Costs
• Size and Weight
• CO2 and other emissions
• Energy consumption
Lower
• Performance
• Torque Density
• Fuel Efficiency
• Energy Efficiency (esp. for
appliances)
• Greater Functionality
Higher
MQ2 magnets can offer 18%
lower overall material cost in a
similar size and weight envelope
Lower Dy content leverages
larger global supply of light REs
18%
Noise, Vibration, Cogging
Torque
Thermal Stability, Torque
Density, Fuel & Power EfficiencyHigher
Lower
1 1 1 1 1
0.97 0.95
1.13
0.97 0.82
Diameter Length Magnet WeightTotal Weight Cost
Sintered Neo (4.5% Dy) MQ2 (0% Dy)
19. ‹#›19
Design Innovation Allows Low-to-Zero Dy Magnets
High Efficiency
Refrigerator Fan Motor
Action: Replaced motors
using ferrite magnets in
refrigerator fan motor with
MQ1 magnets
RESULTS:
Reduce the size of the motor:
height by 70% and diameter by
27%
Motor efficiency improved by
10%, resulting in 1~2%
improvement in whole
refrigerator system
Better design by eliminating
protruded parts due to the
height of motors and fans
Compressors for AC
Systems
Action: Replaced motor
using sintered Neo magnets
(7-8% Dy) with MQ3 (2-3%
Dy) magnets
RESULTS:
Performance maintained while
reducing component costs with
less Dy
Residential HVAC
Circulation Pump
Action: Replaced
induction motor in
circulation pumps with
motors using MQ1 magnets
RESULTS:
Helps pumps meet new energy
efficiency standards
Reduces energy consumption
EU ordinance prohibits the sale
of technically
outmoded, inefficient pump
models from 2013 onwards
Replacement is cost-effective
20. ‹#›20
Companies Utilizing NdFeB Magnets in Motors & Components
Bicycle Dynamo
Engine Cooling
Fan MotorSeat Motor
Window Lift
Motor
Headlight
Adjustment
Motor
AC Compressor Motor
Power Steering Sensor Motor
Fuel Pump
Motor
22. ‹#›22
Companies Utilizing NdFeB Magnets in Motors & Components
Servers
Office
Automation
Optical Disk
Drives
Hard Disk
Drives
23. ‹#›23
Conclusions
Heavy rare earths are becoming less and less of an impediment to the
security of supply of high-performance NdFeB magnets.
1
2
3
Global production outside of China of magnetic rare earths is rising, and
Molycorp‟s integrated supply chains offer flexible entry points, security of
supply, pricing visibility, and long-term contracts – inside or outside of China.
Using rare earth permanent magnets in motors, instead of ferrite
magnets, delivers many powerful economic and environmental benefits to
manufacturers and consumers.
Given that motors consume an estimated 45% of all energy generated
globally, increasing motor efficiencies through rare earth permanent
magnets promises many powerful environmental and energy savings
benefits to the world.4
27. ‹#›27
With the imminent production from India, Mt. Weld, Mountain Pass and Kazakhstan the Rest of
the World (ROW) should be self-sufficient in light rare earths within the next 2-4 years.
Over the past 10 years, a steady build-up of consumption and production by China has occurred.
IMCOA‟s view is that, given adequate and reasonably priced supply, demand for rare earth
magnets will grow at 10-15%pa, once we are over the vicissitudes of the Global Financial Crisis.
Recent communications with phosphor producers and consumers indicates that the impact of
more efficient phosphors and the use of LEDs are definitely having an impact on the growth in
demand; in fact demand could contract.
The forecast demand for rare earths in 2016 has been marginally reduced to 160,000 mt REO.
Now that the price of cerium has returned to more normal levels the demand for polishing
powders for „tablets‟ (and other devices with touch screens) is significant and is impacting on
demand positively.
The very high price of dysprosium and the uncertainties surrounding future security of supply
have resulted in major efforts to reduce or eliminate its use, which have been successful to a
significant extent.
General Comments on Rare Earth Demand & Supply
28. ‹#›28
IMCOA is of the view that the increased activity and legislation aimed at consolidating and facilitating vertical
integration in the industry in China will be a major factor in the future development of the rare earths industry
globally. How is this being achieved:
Allocating the production and export quotas to fewer companies.
In most cases, selecting State Owned Enterprises (SOEs) as the „new leaders‟ of the rare earths industry as they
are easier to control and have the required access to funds for development.
Establishing rare earth stockpiles to ensure stability of supply, while supporting those companies in difficulty;
effectively using it as a price control/stabilising mechanism.
Enforcing environmental legislation; thereby forcing the less efficient enterprises out of business.
Vertical integration is being encouraged and facilitated by the Authorities (e.g. in Baotou and in South China).
Investing in research to ensure that the Chinese industry is at the forefront of global rare earths technology.
The net effect:
Increasing quantities of rare earths will be consumed by Chinese domestic value-adding enterprises; thereby
reducing the quantity available for export – particularly heavy rare earths. China‟s share of demand could
increase.
Co-ordination of pricing will be easier with fewer enterprises.
It will be difficult for the WTO to mount a case with respect to quotas if most of the scarce resources are
processed in China, with the rare earths available to ROW (and China) in the form of added value
products, rather than rare earth oxides, metals and chemicals.
The Major Development in China Likely to Impact on Supply
and Demand for Rare Earths: The Consolidation and
Vertical Integration of the Industry
29. ‹#›29
The situation with respect to the sustainable long term supply of heavy rare earths remains
uncertain:
In 2008 both the China Rare Earths Society and IMCOA highlighted a potential shortfall in heavy rare earths
supply within 10-15 years. China has not published the size, grade and rate of mining at its rare earths
mines for many years; making a comprehensive assessment of reserves more guesswork than calculation.
No new sources of heavy rare earths have been brought on-line since that time.
Due to the higher prices of the heavy rare earths most of the illegal mining and processing of rare earths in
China has been focused on the „heavies‟ – hence the depletion of the finite resources may be greater than
thought a few years ago. These activities are now the focus of the major effort by the Chinese authorities
to stamp it out – including the death penalty.
With the exception of the Dubbo Project (Alkane Resources) IMCOA is of the view that there is no certainty
that there will be any other ROW heavy rare earths project on-line within the next 4 years. No other project
has a proven reserve and a proven process (on a demonstration scale) and advanced environmental
assessment/approval and off-take agreements/MOUs in place.
It remains possible that China will ration the production/supply of heavy rare earths, with a preference for
supply to local enterprises.
However, there is no doubt that China possess significant potential for discovering additional heavy rare
earths resources/reserves.
Heavy Rare Earths Supply
30. ‹#›30
Rare Earths Supply & Demand
Source: IMCOA and discussions with Rare Earths Industry Stakeholders
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
Demandtpa-REO
China Supply ROW Supply China Demand Total Demand
32. ‹#›32
Global Rare Earths Supply and Demand by Application: 2016 & 2020
(Note * In the view of IMCOA phosphor demand in 2016 may well be 8,000 to 8,500t REO)
33. ‹#›33
Forecast Global Demand and Supply for Individual Rare Earths in
2016 (±20%)
(Note * In the view of IMCOA phosphor demand in 2016 may well be 8,000 to 8,500t REO)
35. ‹#›35
Molycorp At A Glance
Summary One of the world's leading manufacturers of custom engineered rare earth
and rare metal products, Molycorp is vertically integrated from our world-
class rare earth resource in Mountain Pass, California to our advanced
downstream processing facilities located across three continents.
Original Resource Discovery
(Mountain Pass, Calif.)
1948
IPO Date July 29, 2010
Listed NYSE: MCP
Global Footprint 27 locations in 11 countries
Employees 2700+
Market Cap $877 million (as of April 16, 2013)
Shares Outstanding 188,586,140 (as of March 31, 2013)
36. ‹#›36
Business Overview by Segment
Resources Segment
• Products: Rare earth oxides (REO), rare
earth feedstock for downstream
facilities, SorbX™
• Facility: Mountain Pass, California
Chemicals & Oxides Segment
• Products: Custom engineered, RE
advanced materials
• Facilities: Silmet -
Sillamae, Estonia, Zibo, China
(ZAMR), and Jiangyin, China (JAMR)
Magnetic Materials & Alloys
Segment
• Products: RE alloys, magnetic powders
and magnets
• Facilities: Magnequench -
China, Thailand; MMA (Arizona)
Rare Metals Segment
• Products: Rare metals (e.g.
tantalum, niobium)
• Facility: Silmet - Sillamae, Estonia
Estimated Capacity 2013 (mt)
700
(mt)
19,050
(REO basis)
12,000
(REO basis)
9,250
(Magnetic
alloy basis)
37. ‹#›37
Our Global Footprint
Our Global Footprint
Peterborough, Canada
Napanee,
Canada
Mountain Pass,
California
Corporate Headquarters,
Greenwood Village
Colorado
Tolleson,
Arizona
Blanding,
Utah Quapaw, Okla.
Toronto,
Canada
SingaporeKorat, Thailand
Zibo,
Shandong
Province, China
Jiangyin,
Jiangsu Province,
China
Tianjin, China
Hyeongok,
South Korea
Nakatsugawa,
Japan
(Joint venture with
Daido Steel &
Mitsubishi Corp.)
Stade,
Germany
Sillamäe, Estonia
Abingdon,
U.K.
Sagard, Germany
(Joint Venture with Buss
& Buss Spezialmetalle
GmbH)
Barbados
• Abingdon, U.K.
• Beijing, China
• Indianapolis, Indiana
• Osaka, Japan
SALES & LIAISON OFFICES
• Singapore
• Tokyo, Japan
• Toronto, Canada
• Turbingen, Germany
• Peterborough, Canada
• Sagard, Germany (JV with Buss &
Buss Spezialmetalle GmbH)
• Seoul, South Korea
Rare Earth Resource
Production Facilities
Research & Development
Administrative Offices
Corporate Headquarters
LEGEND
38. ‹#›38
Mining & Production of
Concentrate
Mountain
Pass, California
Value-
Added
Supply
Chain
OUTSIDE
China
Supply
Chain
INSIDE
China
LREE REO Separation
Metal / Alloy Production
Mountain Pass (Calif.)
Silmet (Estonia)
Tolleson (Arizona)
Silmet (Estonia)
Tolling Companies
Value-
Added
Supply
Chain
INSIDE
China
HREE REO Separation
Magnetic Materials
Korat (Thailand)
Intermetallic Japan
HREE Facility
Expected 2013/14
Location outside China TBA
Magnetic Materials
Tianjin, China
LREE REO Separation
Zibo, China
HREE REO Separation
Jiangyin, China
CUSTOMERSWORLDWIDE
Products sold directly from Mountain Pass
38
Diverse, Vertically Integrated Supply Chains
39. ‹#›39
Downstream Markets: Value-Added Gallium
Application
Mainly smartphone/tablets
Also Amber, Red LEDs
General Lighting
PLASMA TV
LED Lighting applications also
under development
New technology
High Definition, low power consumption
Q4’12: Sharp has launched displays.
Product
6-7N Ga
GaCl3
Ga2O3
Ga2O3
Wireless (GaAs)
White LED
PHOSPHOR
IGZO DISPLAYS
NEW
NEW
41. ‹#›41
Dy-diffusion slides
The coercivity and heat
resistance of a magnet can be
improved by either modifying
the microstructure or increasing
the magnetocryalline
anisotropy of the material.
The former can be achieved
by creating finer grain
structures (like in MQ2), as
well as generating a more
uniform envelop of non-
magnetic material around
each grain (hindering domain
movement).
The use of Dy has been
essential for heat resistant
NdFeB magnets.
However, the Dy resource
and supply is limited.
Therefore, sintered
magnet companies have
been developing more
effective ways to use the
Dy since the mid 2000s.
“In spite of new technologies
and new product designs aimed
at reducing Dysprosium
requirements, Dy will certainly
continue to be in short supply.
As a result, Hitachi and
Shin-Etsu will likely enjoy
continued growth for their
Dy-diffusion magnets.”
Ref. Walt Benecki Magnetics 2013
42. ‹#›42
Traditionally, the Dy Diffusion
process consists of:
• Preparing an alloy in appropriate amount
• Sintering at >1000oC
• A Dy source for diffusion is applied to the
surface of a sintered NdFeB substrate
– Usually vapor or liquid
• Heat is applied (relatively lower than
traditional method)
• Dy uniformly gathers at the periphery of the
crystalline particles (does not diffuse into
the interior of the crystalline particles)
Reducing Dy in Magnets Through Diffusion
Dy distribution mapping in
NdFeB magnet by Electron
Probe Micro Analyzer
(Photo courtesy of Hitachi)
43. ‹#›43
TDK's HAL (High-Anisotropy field Layer)
process diffuses Dy to grain boundary
regions and improves performance.
TDK Dy Diffusion Activity
Dy2O3 powders was blended with 30Nd-1.1B-0.2Al-0.1Cu-bal.Fe and sintered.
T. HIDAKA, C. ISHIZAKA, M. HOSAKO Ferrite and Magnet Products Business Group, TDK Corp., Japan REPM’10 - Proceedings of the 21st Workshop
on Rare-Earth Permanent Magnets and their Applications p100
http://www.tdk.co.jp/techjournal_e/vol08_hal/contents05.htm
Remanent magnetic flux density has been
improved by 3-5% and uses 20-50% less
Dy, depending on magnet dimensions.
44. ‹#›44
Hitachi continues to promote the Ulvac
type Dy-diffusion technology. This
involves heat treating thin sintered
magnets in a vapor of Dy for 1-3
hours. (However they have also looked
into diffusing DyF3 into the surfaces of
magnets more recently.)
Magnets can maintain the same
remanence while increasing intrinsic
coercivity by 320kA/m (4kOe).
In fact the Br can be increased by 400G
and above while preserving Hci equal to
that of existing products, depending on
process conditions, size and shape of a
magnet. http://www.hitachi-
metals.co.jp/e/eh2009/p04.html
Hitachi’s Dy Diffusion technology
Yutaka Matsuura, April 2011
45. ‹#›45
Patents associated with Dy Diffusion
USPTO No. Company Date Title
8,414,709 IMJ
April 9,
2013
Forming a Dy and/or Tb layer on NdFeB sintered magnet
and a grain boundary diffusing process for diffusing
treatment
8,377,233
Shin-Etsu
Chemical
Co., Ltd
February
19, 2013
Disposing a Dy /Tb oxide, fluoride and/or oxyfluoride
powder on a sintered magnet and heat treating
8,350,430
Hitachi,
Ltd
January 8,
2013 Powder blending NdFeB with DyF-based solution
8,377,233 Htachi, Ltd
Nov. 6,
2012
Coating magnet powder with oxy-fluoride and carbon
(MQU-F3)
8,177,921
Hitachi,
Ltd
May 15,
2012
Introducing Dy and/or Tb through the surface of the
sintered magnet by diffusion