As is well known to industry insiders, Hitachi, Ltd. sold Hitachi Metals to a US investment fund at the end of April for more than 800 billion yen.
Hitachi Metals has businesses such as electric wires, special steel, and magnets, and it is attracting attention whether they will be resold as a set or sold by each business in the future.
In particular, the departure of the magnet business, which once drove the rare earth magnet industry in Japan,
"It is extremely important to protect the history and culture of rare earths in Japan," said a source in the rare earth industry.
From Hitachi's point of view, to put it plainly, they don't know what to do because it sold for more than 800 billion yen. Judging from being involved in the rare earth industry in Japan for a long time, they warn that easy choice of US funds poses a threat not only to Japan but also to the United States.
What does it mean?
"For example, the processing of magnet polishing powder, which is made up of the former Santoku's molten salt electrolysis equipment, and if the processing of this polishing powder is outsourced to overseas (for example, China), this electrolysis equipment is no longer be needed, and Japan's rare earth culture will cease at that point. The industry’s people want the Ministry of Economy, Trade and Industry (METI) to understand this importance. "
The former Santoku’s electrolysis facility at Tsuruga is used not only for processing abrasive powder but also for converting oxides into metals. For example, changing neodymium oxide to metal neodymium.
In fact, the recycling process of abrasive powder is costly, including electricity costs. Therefore, I hear that Shin-Etsu Chemical is processed in Vietnam, and TDK and Showa Denko are mostly processed overseas. Then, there are only two locations in the former Santoku, Kobe and Tsuruga, that have molten salt electrolysis equipment. Kobe is only for recycling.
I don't know what kind of conclusion the U.S. fund will draw, but on their side, the idea is that "if they sell (Hitachi Metals) high, that's fine", so they don't hesitate if China decides to buy it. Whether or not the Ministry of Economy, Trade and Industry will stop it is another matter. The fund will not be interested in continuing the Japanese rare earth culture. Therefore, it is possible to reach a simple solution that requires costly processing of abrasive powder overseas.
Also, even those involved in the domestic rare earth industry
"They think that Japanese rare earth culture is important emotionally, but it's industrially over, so it's not necessary?"
I would also like to note that there is also a “super dry” opinion.
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How about selling the entire magnet business of Hitachi Metals?
"At this moment, it seems that no one has raised their hands at home or abroad."
Isn't China interested?
"No, they already have Japanese technology, so they wouldn't buy it anymore. It would be ridiculous to pay royalties."
The above Is a question and answer (Q&A) with a rare earth magnet veteran’s source. Yes, even China is not interested in Hitachi's magnet business.
The best thing is that it is the most beautiful in Japan for magnet companies, such as Shinetsu, TDK, and Daido Steel, to incorporate Hitachi's magnet business, but this is difficult if they just consider the merits. That is why, from the perspective of protecting Japan's rare earth culture and history, it is necessary to take measures by the government.
At a different level, if a Chinese semiconductor maker buys Taiwan's TSMC, the Taiwanese government will undoubtedly stop it. Similarly, if a Chinese company tries to buy Microsoft in the U.S., the U.S. government will definitely stop it and the trade war with China will intensify.
Hitachi Metals' magnet business has various histories, including Sumitomo Special Metals, where Mr. Sagawa, the inventor of neodymium magnets, was enrolled. And the history of Santoku, which has existed since the dawn of rare earths.Santoku wouldn't have expected that it would be in the same situation three years after it was sold to Hitachi. The judgment of the management is irreversible if it is mistaken, but it is a good example of what not to do.
If Santoku had survived as it was, its corporate value and importance would have increased considerably. Existence as a bridgehead for rare earth distribution. ..
However, the question is again that the giant who has an overwhelming advantage in the rare earths of China is becoming stronger.
Hitachi Metals' magnet business has various histories, including Sumitomo Special Metals, where Mr. Sagawa, the inventor of neodymium magnets, was enrolled. And the history of Santoku, which has existed since the dawn of rare earths. It wouldn't have expected that Santoku would be in the same situation three years after the company was sold to Hitachi. The judgment of the management is irreversible if it is mistaken, but it is a good example of what not to do.
If Santoku had survived as it was, its corporate value and importance would have increased considerably. Existence as a bridgehead for rare earth distribution.
However, the question is again that the giant who has an overwhelming advantage in the rare earths of China is becoming stronger.
The draft trade control Laws and rare earth control laws released by China in January this year were shocking. This is still a draft, but it should be implemented almost as a draft. To put it very simply, if the
Chinese side doesn't like it, they won't sell rare earth materials or products, so to speak, that is a treasure sword of the legendary family.
It has been pointed out that the key to this legendary sword is samarium metal, not items such as neodymium, dysprosium, and terbium, which are big stars in the rare earth industry.
Why?
"Samarium metal is now made only in China. In the past, Japan also produced metal samarium from samarium oxide, but withdrew almost 20 years ago due to cost inconvenience. As a result, it became only China, about 1,000 tons per year worldwide. All the samarium raw materials for a samarium cobalt magnet are China. If China stops exporting this samarium, there is no existing US military industry, so in the sense of the Japan-US alliance, Japan should be stocked with samarium metal as a national defense, " a leading expert in rare earth research insists.
There are companies in the United States that produce samarium-cobalt magnets, but the raw material is still from China.
At this point, China does not appear to have any impact on rare earth trade, despite the ongoing glaring of the U.S. and Chinese governments.
Rather, the amount of trade is increasing. The amount of rare earth ore exported from the U.S. to China, separated and refined in China, and returned to the United States as rare earth oxides (export from China), and the amount of rare earth magnets exported from China to the United States are extremely favorable.
China's import of rare earth ore (HS: 25309020) in March 2021 totaled 10,783 tons from the United States. Last September it was 2,240 tons.
In addition, the total export volume of rare earth magnets from China was 3,212 tons in March 2021, of which 411 tons were destined for the United States, second to Germany (415 tons). In October last year, a total of 3,201 tons, the largest of which was 461 tons to the United States, and magnet trade is extremely stable.
But isn't this an "arbitrary" smiling rare earth diplomacy to keep the rice off guard and reassure it that there is no problem at all? Some officials take a spy novel view. The reality is that the U.S.still has to rely on China's rare earth supply. A joint project with Lynas Corporation (in Texas, USA) is underway, but if China's supply suddenly cuts off, the United States will be in trouble immediately. If the U.S.secretly stocks rare earths and magnets, that's no problem.
Japan supplies Samarium-cobalt magnets to the U.S.. Japan also imports samarium metal from China. Japan will also be in distress if it is conditional that China should not export the products it contains when exporting samarium metal to Japan (that is, samarium magnets) to the United States. That's why there is a samarium metal stockpile! There are intellectuals who call.
"The stockpile of samarium metal is cheap. At the current market price, if there are 200 million yen, we should be able to stockpile for about 10 years. Buy now!!"
The samarium metal market price is currently moving around $ 13 per kilogram.
Samarium metal market price transition (99.5% min USD / kg FOBChina) 3 years
（IRUNIVERSE YT）
