Japan’s Nidec to make motors without rare earth metals

TOKYO, Oct 28 (BestGrowthStock) – Japan’s Nidec Corp (6594.OS: ) will
begin making switched reluctance motors from 2012 as it reduces
its reliance on rare earth materials used in the production of
precision motors.

Japanese firms, which use the metals in hi-tech products,
have been in a tight spot after China, which supplies about 97
percent of the world’s demand, slashed export quotas and
reduced shipments to its neighbour following a territorial
dispute.

Prices of the minerals have spiked and mining firms have
begun rushing to develop sources outside China amid fears that
Beijing will use its leverage as a political tool, something a
Chinese government spokesman denied earlier on Thursday.

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Full coverage of rare earths [ID:nSGE69P0D3]

Graphic on rare earth metals: http://r.reuters.com/bam39p

Graphic on production and use: http://r.reuters.com/nax47p

Graphic on rare earth shares:
http://link.reuters.com/sev62q

Insider TV report http://r.reuters.com/gyk39p

Analysis-China’s strategy about green tech [ID:nTOE69Q02L]

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Nidec will start producing the switched reluctance motors,
which do not use rare earth metals such as neodymium, for heavy
machinery from 2012, for tractors from 2013, and eventually for
motor vehicles, company spokesman Takehiro Osaka said.

The Kyoto-based firm acquired the technology when it bought
two of U.S.-based Emerson Electric’s (EMR.N: ) motors businesses
earlier this year. [ID:nTOE67G083]

Prices of some rare earths on world markets have increased
tenfold this year, reversing a long-trend towards lower prices
caused largely by greater Chinese production over the past two
decades [ID:nSGE69Q0G9].

Shares of Nidec settled 3.8 percent higher at 7,990 yen on
Thursday.
(Reporting by James Topham; Editing by Lincoln Feast)

Japan’s Nidec to make motors without rare earth metals