Santoku America bought for $17.5 million by Molycorp
Molycorp has purchased Santoku America, a producer of rare earth alloys and metals, for $17.5 million in cash.
Santoku America, a Phoenix-based division of Japan's Santoku Corp., fits into what Molycorp calls its "mines to magnets" strategy. Molycorp owns the mine in Mountain Pass, Calif., about 15 miles south of Primm, that is one of the few rare earth producers outside of China.
In a statement, Molycorp said the acquisition will let it start to manufacture and sell rare earth alloys for use in magnets found in electric and hybrid cars, advanced wind turbines, high-tech electronics and other applications, without depending on rare earth metals from China.
Santoku America will use rare earth feedstocks from Molycorp's mine in Mountain Pass, Calif.
Molycorp has renovated and restarted production at the Mountain Pass mine, but the company also wants to produce finished products. Santoku America, which produces rare earth-based alloys, is a step up the supply chain from raw materials.