Siemens and Strategic Elements REE IPO

[Sparty]

Last week Siemens inked a deal with Lynas Corp to JV the production of heavy REE containing permanent magnets that will be/are being used in the second generation wind turbines. These second generation turbines use permanent magnets and this allows them to do away with the heavy, cumbersome and maintenance dependent gear boxes used in the first generation turbines. The advent of the gear box less turbines will see a lot more blades spinning and not waiting on maintenance crews to catch up... this is of particular importance for the off-shore turbines.

Yesterday's Reuters article indicates that Siemens is going to expand this program.

See snippet:

"Last week, Bloomberg reported that Siemens AG is launching a new effort aimed at reducing its dependence on Chinese rare earth metals. Like other major wind turbine manufacturers, Siemens is heavily dependent upon China for metals such as dysprosium and neodymium. These specific metals are critical composites in the permanent magnets found in Siemens expanding range of direct-drive wind turbines. According to the report, Siemens will instead look to finance and develop new production sites across Australia, Russia, Greenland, and California."

"Other large manufacturers of rare earth-intensive clean technologies are expected to follow suit as market prices continue to rise. "

The last sentence makes me think that the upcoming (Tax-free) REE IPO by Strategic Elements is both well timed and clever.