GREENWOOD VILLAGE, Colo. (AP) -- The rare-earth minerals company Molycorp Inc. has acquired the rare-earth alloy and metal producer Santoku America Inc. for $17.5 million in cash.
Colorado-based Molycorp announced the deal on Monday.
Santoku America is based in Tolleson, Ariz. and was a subsidiary of Japanese company Santoku Corp.
Molycorp said the acquisition would allow it to immediately begin manufacturing and selling 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.
Earlier this month, Molycorp announced it had acquired a 90 percent controlling stake in the rare-earth processing facility AS Silmet in Estonia.