Nikkei reported that Hitachi Metals Limited has jettisoned plans to jointly produce rare earth magnets with US mining company Molycorp Inc and will instead build a factory and make the magnets on its own in the US.

Hitachi Metals was to join hands with Molycorp with the goal of reducing its dependence on China by building a comprehensive operation in the US for mining rare earth ores, processing the output and producing magnets from the refined material. The partners had planned to complete negotiations by the end of June but they could not agree on the scope of magnets to be produced in the US.

Molycorp wanted the partnership to include rare earth magnets for consumer electronics applications. Hitachi Metals wanted to focus on high tech applications such as hybrid vehicles and electric cars. Although the negotiations for joint production have ended, Molycorp will still supply rare earth materials to Hitachi Metals which expects to begin making the magnets at the end of 2012 as planned.

(Sourced from Nikkei.com)