Tesla signs permanent magnet supply deal
ZKSH will supply its permanent magnet to Tesla for the next three years
Chinese listed magnetic material company Beijing Zhong Ke San Huan Hi-Tech Company (ZKSH) has announced the signing of an agreement to supply Tesla Motors with neodymium iron boron (NdFeB) magnets for the next three years.
The largest NdFeB producer in China, ZKSH is also the second-largest in the world in terms of NdFeB magnets, with a capacity of 18,000 tpa. The purchase price will be confirmed with each order, the company said.
In Q1-Q3, ZKSH had a turnover of Chinese Renminbi (Rmb) 2.55bn ($371.3m), down 1% y-o-y, while Q3 net profit rose 25% to Rmb 231m.
NdFeB magnets use neodymium, sometimes dysprosium and praseodymium. According to China Customs, Q1-Q3 neodymium exports stood at 360 tonnes, worth $14.47m, down 4.5% and 23% y-o-y respectively.
Half is exported to Japan, followed by Europe and the Americas. Permanent magnet exports in the three quarters reached 19,900 tonnes, up 15% y-o-y. Leading buyers were Germany, Hong Kong, the US, South Korea, Denmark, Vietnam and Thailand.
Author: Rockstone Research
Date: Nov 17, 2016
Original Source: www.indmin.com