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Low and-zero dy-magnet_update_toronto_v16 - 1135


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Low and-zero dy-magnet_update_toronto_v16 - 1135

  1. 1. ‹#›Presented to:By:Date:The New Landscape for RareEarth Permanent Magnets U.S.-Sourced Feedstock Secure Supply Chains Long-Term Price Visibility Less Reliance on “Heavy” Rare Earths
  2. 2. ‹#›2Safe Harbor StatementsThis presentation contains forward-looking statements within the meaning ofthe federal securities laws. These forward-looking statements representMolycorps beliefs, projections and predictions about future events orMolycorps future performance. Forward-looking statements can be identifiedby 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 orphrases. These forward-looking statements are necessarily subjective andinvolve known and unknown risks, uncertainties and other important factorsthat could cause Molycorps actual results, performance or achievements orindustry results to differ materially from any future results, performance orachievement described in or implied by such statements.Factors that may cause actual results to differ materially from expectedresults described in forward-looking statements include, but are not limitedto: the potential need to secure additional capital to implement Molycorpsbusiness plans, and Molycorps ability to successfully secure any suchcapital; Molycorps ability to complete its planned capital projects, such as itsmodernization and expansion efforts, including the achievement of an initialrun rate of 19,050 metric tons at its Mountain Pass, California rare earthmine and processing facility (the “Molycorp Mountain Pass facility”), andreach full planned production rates for REO and other planned downstreamproducts, in each case within the projected time frame; the success ofMolycorps cost mitigation efforts in connection with its modernization andexpansion efforts at the Molycorp Mountain Pass facility, which, ifunsuccessful, might cause its costs to exceed budget; the final costs ofMolycorps planned capital projects, which may differ from estimated costs;Molycorps ability to achieve fully the strategic and financial objectivesrelated to the acquisition of Neo Material Technologies, Inc. (now MolycorpCanada), including the acquisitions impact on Molycorps financial conditionand results of operations; foreign exchange rate fluctuations; thedevelopment and commercialization of new products; risks and uncertaintiesassociated with intangible assets, including any future goodwill impairmentcharges; unexpected actions of domestic and foreign governments; variousevents that could disrupt operations, including natural events and otherrisks; uncertainties associated with Molycorps reserve estimates and non-reserve deposit information, including estimated mine life and annualproduction; uncertainties related to feasibility studies that provide estimatesof expected or anticipated costs, expenditures and economic returns, REOprices, production costs and other expenses for operations, which aresubject to fluctuation; uncertainties regarding global supply and demand forrare earths materials; uncertainties regarding the results of Molycorpsexploratory drilling programs; Molycorps ability to enter into additionaldefinitive agreements with its customers and its ability to maintain customerrelationships; Molycorps sintered neodymium-iron-boron rare earth magnetjoint ventures ability to successfully manufacture magnets within itsexpected timeframe; Molycorps ability to maintain appropriate relations withunions and employees; Molycorps ability to successfully implement itsvertical integration strategy; environmental laws, regulations and permitsaffecting Molycorps business, directly and indirectly, including, amongothers, those relating to mine reclamation and restoration, climate change,emissions to the air and water and human exposure to hazardoussubstances used, released or disposed of by Molycorp; uncertaintiesassociated with unanticipated geological conditions related to mining; andthe outcome of stockholder class action litigation, derivative litigation and apending SEC investigation, including any actions taken by governmentagencies in connection therewith.For more information regarding these and other risks and uncertainties thatMolycorp may face, see the section entitled “Risk Factors” of the CompanysAnnual Report on Form 10-K for the year ended December 31, 2012. Anyforward-looking statement contained in this presentation reflects Molycorpscurrent views with respect to future events and is subject to these and otherrisks, uncertainties and assumptions relating to Molycorps operations,operating results, growth strategy and liquidity. You should not place unduereliance on these forward-looking statements because such statementsspeak only as to the date when made. Molycorp assumes no obligation topublicly update or revise these forward-looking statements for any reason,or to update the reasons actual results could differ materially from thoseanticipated in these forward-looking statements, even if new informationbecomes available in the future, except as otherwise required by applicablelaw.
  3. 3. ‹#›3Main PointsIn the past two years, rare earth price volatility, lack of supply security, and concernsover “heavy” rare earth availability have discouraged manufacturers from using REpermanent magnets and encouraged them to find alternatives, which can increaseenergy usage and degrade performance.1234Additionally, engineering advances and new economic realities are bringingmanufacturers back to rare earth magnets. NdFeB magnets that contain little-to-noDysprosium (Dy) can meet or exceed the performance of traditional sintered magnetswith high Dy content (8-10%) for applications that operate in higher temperatureenvironments.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, verticallyintegrated supply chains outside of China can now offer flexible entry points, securityof supply, pricing visibility, and long-term contracts.Demand is growing for higher efficiency motors as a result of rising energy efficiencystandards and consumer demand for smaller, lighter, and more energy efficientproducts. Rare earth (RE) permanent magnets help reduce motor size, weight, andenergy consumption to better meet these regulatory and market demands.
  4. 4. ‹#›4The Powerful Benefits ofRare Earth PermanentMagnets
  5. 5. ‹#›5Lifecycle CostsThe Power of Rare Earth Magnets in MotorsBy replacing Ferrite magnets in motors with:Consumptionof naturalresourcesYou canREDUCE:PowerConsumptionCO2 and otherEmissionsBy 10%Dependence onLiquid Fossil FuelsWeight and SizeRE motor vs. Ferrite basedmotor
  6. 6. ‹#›6Clean EnergyThe Power of Rare Earth Magnets in MotorsRare Earth magnets help maketechnologies more effective andmore efficient.AerospaceAutomobilesHigh-EfficiencyMotors forEnergy-EfficientHomesComputing &NetworkTechnologies
  7. 7. ‹#›7The use ofcan help achieve energyefficiency savings of up toPercentage of global powerconsumption byGLOBAL POWER CONSUMPTIONGlobal Energy Savings Potential of RE Magnet Motors* Source: 2011 International Energy Agency analysis** Source: Mitsubishi Corporation.ElectricMotors45%All OtherConsumption55%*GLOBAL POWER CONSUMPTION**
  8. 8. ‹#›8How The Landscape ForRE Magnets Has Changedin the Past Year
  9. 9. ‹#›92010 – 2012Prior to 2010Manufactures Increasingly DesigningProducts with Rare Earth MagnetsPast Challenges of Rare Earth Magnet UseLow and Relatively StableRare Earth PricesReliability of RareEarth Supplies wasLess of a Concernthan TodaySupply Constraints &ShortagesLimitedSupplyOptionsRare Earth Prices Highly VolatileManufacturersDissuaded from RareEarth Magnet UseRare Earth MagnetsCost-to-PerformanceRatio Was SteadilyImprovingPCA Period of Increased Riskfor Magnet Users
  10. 10. ‹#›10New Supplies ComingOnline OutsideChinaOutside2013: Rare Earth Supply Situation is Greatly ImprovingGlobal Rare Earth SupplyLandscape is Greatly Improving2013Long-TermSupplyAgreementsLynasOthersover thelong-termVisibility IntoPricingLessDependenceon Heavy REs(Dy)Security ofSupply
  11. 11. ‹#›11Today’s State-of-the-Art:NdFeB Permanent MagnetsWith Little-to-No Dysprosium
  12. 12. ‹#›12-10.0-8.0-6.0-4.0-2.00.075 100 125 150 175IrreversibleFluxLossafter1hr(%)Temperature (oC)-10.0-8.0-6.0-4.0-2.00.075 100 125 150 175IrreversibleFluxLossafter1hr(%)Temperature (oC)Low-to-Zero Dysprosium NdFeB MagnetsMQ1 MQ3 MQ2Zero-Dy Bonded Magnets• Cost-effective replacement for iron-based(ferrite) magnets• Allows for smaller/lighter motors• Helps vehicles meet higher fuel efficiencyand performance standards• Made from abundant MountainPass, California rare earth oreHot-Pressed, Fully Dense MagnetsWith Zero-Dy Content• Provides a 4-7% “Dy advantage” oversintered NdFeB magnets• Excellent magnetic properties at tempsof up to 200°C with zero Dy• Made from abundant MountainPass, California rare earth oreHot-Pressed, Fully Dense MagnetsWith Low-Dy Content• 2-4% “Dy advantage” over sinteredNdFeB magnets• Excellent magnetic properties at tempsof up to 180°C with little Dy• Made from abundant MountainPass, California rare earth oreExcellent thermal stability2030405060700 20 40 60Efficiency(%)Torque (mNm)Motor with Ferrite MagnetMotor with MQ1 MagnetAllows for higher efficiencyPC=2, Uncoated MagnetsTypical MQ3 grade with low Dy (2%) MQ2-14-150 grade with 0% Dy
  13. 13. ‹#›13Low-to-Zero Dysprosium NdFeB Magnets MQ magnets (MQ1, MQ2, and MQ3) fill the gap between fully denseanisotropic sintered neo magnets and sintered ferrite magnets MQ magnets, with only very limited exceptions, contain no heavy rareearths such as Dy or Tb. -1600 -1200 -800 -400 0J(T)H (kA/m)SinteredNeo (43SH)MQ3MQ1SinteredFerriteMQ2
  14. 14. ‹#›14The 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 Neo10µm 1µm 0.5µmMQ3 MQ2
  15. 15. ‹#›15• High-Performance, Low-Dy Sintered Magnets: Intermetallics Japan is now producingnext-generation, high-performance sintered NdFeB magnets with 50% or less dysprosiumcontent than traditional sintered magnets. IMJ recently has developed high-performanceDy-free sintered NdFeB magnets.• Abundant Feedstock: Magnetic rare earths are sourced from Molycorp‟s world-class rareearth facility in Mountain Pass, California• Target markets: Automotive and home appliance sectorsHigh-Performance, Low-Dy Sintered NdFeB MagnetsHigh MagneticPerformance• GBD (GrainBoundaryDiffusion) andfine powdertechnologyyields highermagneticproperties andmagnetperformance.Cost Advantages• Higherproduction yield(80~90%)• Less heavy rareearth (Dy & Tb)content for lowercost and pricestability.• Zero-Dy sinteredmagnetsSuperior Quality• Qualityassurance isoverseen by oneof the world’sleadingproducers ofhigh-end rareearth permanentmagnets: DaidoSteel.Stable FeedstockSourcing• Magnetic rareearth feedstockcomes from theworld-class, high-tonnage rareearth deposit ofMolycorp’sMountainPass, Californiafacility.Strong GlobalAlliance• Research anddevelopmentcapabilities ofIntermetallicsCo. Ltd.combined withstrategicalliances withDaidoSteel, MitsubishiCorporation andMolycorp.IMJ’s Next-Generation, Low-Dy Sintered NdFeB Magnets
  16. 16. ‹#›16Approaches to Dy-diffusion by the top Japanese Sintered Magnet Makers Dy-vapor diffusiontechnique, where thin sinteredmagnets are thermally treated inDy-vapor environment Hitachi is currently running asample evaluation program withkey customers and expects fullcommercialization of the serieswith new Dy-reductiontechnologies in 2014.A number of different grain boundary diffusion techniques have beenreported by the various Japanese sintered magnet manufacturers.Blending Dy2O3 powder with theNdFeB powder and combining thesintering and Dy-diffusing stages.Also discussed treating Dy-coatedsintered magnets.Savings in Dy: 20-50% less Dy Coating 1-5mm thin magnets withDy2O3 and DyF3 slurries andheating these coated magnets for1-10 hours at 800-900oC Savings in Dy: 60% from original Can be found in new Nissan Leaf2012 modelTraditional methodDy Diffusion
  17. 17. ‹#›17How Manufacturers TodayAre Using Low-to-Zero DyRare Earth Magnets
  18. 18. ‹#›18Permanent MagnetMotorsVs.Induction MotorsMotors withMQ1 MagnetsVs.Motors w/Ferrite MagnetsMotors withZero-Dy MQ2 MagnetsVs.Sintered Neo Magnets w/DyThe Benefits of Using Rare Earth Permanent Magnet MotorsHigher• Energy Efficiency• Dynamic Performance• Operational Efficiencies• Continuous Torque• Bearing LifeLower• Lifecycle Costs• Size & Weight• Noise & Vibration• Operating Temperature• Current• Ramp-up TimeInduction Motor (left) versuscomparable permanent magnetmotor Ferrite magnet-based motor (left)versus comparable MQ1 motor• Lifecycle Costs• Size and Weight• CO2 and other emissions• Energy consumptionLower• Performance• Torque Density• Fuel Efficiency• Energy Efficiency (esp. forappliances)• Greater FunctionalityHigherMQ2 magnets can offer 18%lower overall material cost in asimilar size and weight envelopeLower Dy content leverageslarger global supply of light REs18%Noise, Vibration, CoggingTorqueThermal Stability, TorqueDensity, Fuel & Power EfficiencyHigherLower1 1 1 1 10.97 0.951.130.97 0.82Diameter Length Magnet WeightTotal Weight CostSintered Neo (4.5% Dy) MQ2 (0% Dy)
  19. 19. ‹#›19Design Innovation Allows Low-to-Zero Dy MagnetsHigh EfficiencyRefrigerator Fan MotorAction: Replaced motorsusing ferrite magnets inrefrigerator fan motor withMQ1 magnetsRESULTS: Reduce the size of the motor:height by 70% and diameter by27% Motor efficiency improved by10%, resulting in 1~2%improvement in wholerefrigerator system Better design by eliminatingprotruded parts due to theheight of motors and fansCompressors for ACSystemsAction: Replaced motorusing sintered Neo magnets(7-8% Dy) with MQ3 (2-3%Dy) magnetsRESULTS: Performance maintained whilereducing component costs withless DyResidential HVACCirculation PumpAction: Replacedinduction motor incirculation pumps withmotors using MQ1 magnetsRESULTS: Helps pumps meet new energyefficiency standards Reduces energy consumption EU ordinance prohibits the saleof technicallyoutmoded, inefficient pumpmodels from 2013 onwards Replacement is cost-effective
  20. 20. ‹#›20Companies Utilizing NdFeB Magnets in Motors & ComponentsBicycle DynamoEngine CoolingFan MotorSeat MotorWindow LiftMotorHeadlightAdjustmentMotorAC Compressor MotorPower Steering Sensor MotorFuel PumpMotor
  21. 21. ‹#›21Companies Utilizing NdFeB Magnets in Motors & ComponentsAC MotorRefrigerationVacuumCleanerCeiling Fan
  22. 22. ‹#›22Companies Utilizing NdFeB Magnets in Motors & ComponentsServersOfficeAutomationOptical DiskDrivesHard DiskDrives
  23. 23. ‹#›23ConclusionsHeavy rare earths are becoming less and less of an impediment to thesecurity of supply of high-performance NdFeB magnets.123Global production outside of China of magnetic rare earths is rising, andMolycorp‟s integrated supply chains offer flexible entry points, security ofsupply, pricing visibility, and long-term contracts – inside or outside of China.Using rare earth permanent magnets in motors, instead of ferritemagnets, delivers many powerful economic and environmental benefits tomanufacturers and consumers.Given that motors consume an estimated 45% of all energy generatedglobally, increasing motor efficiencies through rare earth permanentmagnets promises many powerful environmental and energy savingsbenefits to the world.4
  24. 24. ‹#›24Questions?For more information, please contact:
  25. 25. ‹#›25Appendix Slides
  26. 26. ‹#›26Global Supply & DemandTrends for Rare Earths
  27. 27. ‹#›27 With the imminent production from India, Mt. Weld, Mountain Pass and Kazakhstan the Rest ofthe 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 earthmagnets 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 ofmore efficient phosphors and the use of LEDs are definitely having an impact on the growth indemand; 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 polishingpowders for „tablets‟ (and other devices with touch screens) is significant and is impacting ondemand positively. The very high price of dysprosium and the uncertainties surrounding future security of supplyhave resulted in major efforts to reduce or eliminate its use, which have been successful to asignificant extent.General Comments on Rare Earth Demand & Supply
  28. 28. ‹#›28IMCOA is of the view that the increased activity and legislation aimed at consolidating and facilitating verticalintegration in the industry in China will be a major factor in the future development of the rare earths industryglobally. 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 theyare 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; therebyreducing the quantity available for export – particularly heavy rare earths. China‟s share of demand couldincrease. 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 areprocessed in China, with the rare earths available to ROW (and China) in the form of added valueproducts, rather than rare earth oxides, metals and chemicals.The Major Development in China Likely to Impact on Supplyand Demand for Rare Earths: The Consolidation andVertical Integration of the Industry
  29. 29. ‹#›29The situation with respect to the sustainable long term supply of heavy rare earths remainsuncertain: In 2008 both the China Rare Earths Society and IMCOA highlighted a potential shortfall in heavy rare earthssupply within 10-15 years. China has not published the size, grade and rate of mining at its rare earthsmines 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 inChina has been focused on the „heavies‟ – hence the depletion of the finite resources may be greater thanthought a few years ago. These activities are now the focus of the major effort by the Chinese authoritiesto 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 certaintythat there will be any other ROW heavy rare earths project on-line within the next 4 years. No other projecthas a proven reserve and a proven process (on a demonstration scale) and advanced environmentalassessment/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 forsupply to local enterprises. However, there is no doubt that China possess significant potential for discovering additional heavy rareearths resources/reserves.Heavy Rare Earths Supply
  30. 30. ‹#›30Rare Earths Supply & DemandSource: IMCOA and discussions with Rare Earths Industry Stakeholders020,00040,00060,00080,000100,000120,000140,000160,000180,000200,000Demandtpa-REOChina Supply ROW Supply China Demand Total Demand
  31. 31. ‹#›31Global Rare Earths Supply and Demand(2005-2020)
  32. 32. ‹#›32Global 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. ‹#›33Forecast Global Demand and Supply for Individual Rare Earths in2016 (±20%)(Note * In the view of IMCOA phosphor demand in 2016 may well be 8,000 to 8,500t REO)
  34. 34. ‹#›34About Molycorp
  35. 35. ‹#›35Molycorp At A GlanceSummary One of the worlds leading manufacturers of custom engineered rare earthand rare metal products, Molycorp is vertically integrated from our world-class rare earth resource in Mountain Pass, California to our advanceddownstream processing facilities located across three continents.Original Resource Discovery(Mountain Pass, Calif.)1948IPO Date July 29, 2010Listed NYSE: MCPGlobal Footprint 27 locations in 11 countriesEmployees 2700+Market Cap $877 million (as of April 16, 2013)Shares Outstanding 188,586,140 (as of March 31, 2013)
  36. 36. ‹#›36Business Overview by SegmentResources Segment• Products: Rare earth oxides (REO), rareearth feedstock for downstreamfacilities, SorbX™• Facility: Mountain Pass, CaliforniaChemicals & Oxides Segment• Products: Custom engineered, REadvanced materials• Facilities: Silmet -Sillamae, Estonia, Zibo, China(ZAMR), and Jiangyin, China (JAMR)Magnetic Materials & AlloysSegment• Products: RE alloys, magnetic powdersand magnets• Facilities: Magnequench -China, Thailand; MMA (Arizona)Rare Metals Segment• Products: Rare metals (e.g.tantalum, niobium)• Facility: Silmet - Sillamae, EstoniaEstimated Capacity 2013 (mt)700(mt)19,050(REO basis)12,000(REO basis)9,250(Magneticalloy basis)
  37. 37. ‹#›37Our Global FootprintOur Global FootprintPeterborough, CanadaNapanee,CanadaMountain Pass,CaliforniaCorporate Headquarters,Greenwood VillageColoradoTolleson,ArizonaBlanding,Utah Quapaw, Okla.Toronto,CanadaSingaporeKorat, ThailandZibo,ShandongProvince, ChinaJiangyin,Jiangsu Province,ChinaTianjin, ChinaHyeongok,South KoreaNakatsugawa,Japan(Joint venture withDaido Steel &Mitsubishi Corp.)Stade,GermanySillamäe, EstoniaAbingdon,U.K.Sagard, Germany(Joint Venture with Buss& Buss SpezialmetalleGmbH)Barbados• Abingdon, U.K.• Beijing, China• Indianapolis, Indiana• Osaka, JapanSALES & LIAISON OFFICES• Singapore• Tokyo, Japan• Toronto, Canada• Turbingen, Germany• Peterborough, Canada• Sagard, Germany (JV with Buss &Buss Spezialmetalle GmbH)• Seoul, South KoreaRare Earth ResourceProduction FacilitiesResearch & DevelopmentAdministrative OfficesCorporate HeadquartersLEGEND
  38. 38. ‹#›38Mining & Production ofConcentrateMountainPass, CaliforniaValue-AddedSupplyChainOUTSIDEChinaSupplyChainINSIDEChinaLREE REO SeparationMetal / Alloy ProductionMountain Pass (Calif.)Silmet (Estonia)Tolleson (Arizona)Silmet (Estonia)Tolling CompaniesValue-AddedSupplyChainINSIDEChinaHREE REO SeparationMagnetic MaterialsKorat (Thailand)Intermetallic JapanHREE FacilityExpected 2013/14Location outside China TBAMagnetic MaterialsTianjin, ChinaLREE REO SeparationZibo, ChinaHREE REO SeparationJiangyin, ChinaCUSTOMERSWORLDWIDEProducts sold directly from Mountain Pass38Diverse, Vertically Integrated Supply Chains
  39. 39. ‹#›39Downstream Markets: Value-Added GalliumApplicationMainly smartphone/tablets Also Amber, Red LEDsGeneral Lighting PLASMA TV LED Lighting applications alsounder development New technology High Definition, low power consumption Q4’12: Sharp has launched displays.Product6-7N GaGaCl3Ga2O3Ga2O3Wireless (GaAs)White LEDPHOSPHORIGZO DISPLAYSNEWNEW
  40. 40. ‹#›40Dy DiffusionTechnologies
  41. 41. ‹#›41Dy-diffusion slidesThe coercivity and heatresistance of a magnet can beimproved by either modifyingthe microstructure or increasingthe magnetocryallineanisotropy of the material.The former can be achievedby creating finer grainstructures (like in MQ2), aswell as generating a moreuniform envelop of non-magnetic material aroundeach grain (hindering domainmovement).The use of Dy has beenessential for heat resistantNdFeB magnets.However, the Dy resourceand supply is limited.Therefore, sinteredmagnet companies havebeen developing moreeffective ways to use theDy since the mid 2000s.“In spite of new technologiesand new product designs aimedat reducing Dysprosiumrequirements, Dy will certainlycontinue to be in short supply.As a result, Hitachi andShin-Etsu will likely enjoycontinued growth for theirDy-diffusion magnets.”Ref. Walt Benecki Magnetics 2013
  42. 42. ‹#›42Traditionally, the Dy Diffusionprocess consists of:• Preparing an alloy in appropriate amount• Sintering at >1000oC• A Dy source for diffusion is applied to thesurface of a sintered NdFeB substrate– Usually vapor or liquid• Heat is applied (relatively lower thantraditional method)• Dy uniformly gathers at the periphery of thecrystalline particles (does not diffuse intothe interior of the crystalline particles)Reducing Dy in Magnets Through DiffusionDy distribution mapping inNdFeB magnet by ElectronProbe Micro Analyzer(Photo courtesy of Hitachi)
  43. 43. ‹#›43 TDKs HAL (High-Anisotropy field Layer)process diffuses Dy to grain boundaryregions and improves performance.TDK Dy Diffusion ActivityDy2O3 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 Workshopon Rare-Earth Permanent Magnets and their Applications p100 Remanent magnetic flux density has beenimproved by 3-5% and uses 20-50% lessDy, depending on magnet dimensions.
  44. 44. ‹#›44 Hitachi continues to promote the Ulvactype Dy-diffusion technology. Thisinvolves heat treating thin sinteredmagnets in a vapor of Dy for 1-3hours. (However they have also lookedinto diffusing DyF3 into the surfaces ofmagnets more recently.) Magnets can maintain the sameremanence while increasing intrinsiccoercivity by 320kA/m (4kOe). In fact the Br can be increased by 400Gand above while preserving Hci equal tothat of existing products, depending onprocess conditions, size and shape of amagnet.’s Dy Diffusion technologyYutaka Matsuura, April 2011
  45. 45. ‹#›45Patents associated with Dy DiffusionUSPTO No. Company Date Title8,414,709 IMJApril 9,2013Forming a Dy and/or Tb layer on NdFeB sintered magnetand a grain boundary diffusing process for diffusingtreatment8,377,233Shin-EtsuChemicalCo., LtdFebruary19, 2013Disposing a Dy /Tb oxide, fluoride and/or oxyfluoridepowder on a sintered magnet and heat treating8,350,430Hitachi,LtdJanuary 8,2013 Powder blending NdFeB with DyF-based solution8,377,233 Htachi, LtdNov. 6,2012Coating magnet powder with oxy-fluoride and carbon(MQU-F3)8,177,921Hitachi,LtdMay 15,2012Introducing Dy and/or Tb through the surface of thesintered magnet by diffusion