Rare earth alliance to take on Hitachi

Seven domestic rare earth companies have formed an industrial alliance to sue Japan's Hitachi Metals for its patent monopoly in the United States.

Sun Baoyu, chairman of the board of Shenyang General Magnetic Co Ltd and leader of the alliance, said the companies want to end the longtime monopoly held by the Japanese firm in various international markets.

The alliance has already kick-started the process by hiring lawyers to ensure that their production process does not infringe on the Japanese company's patent rights. In addition, Sun and his alliance plan to prove the invalidity of three patents owned by Hitachi Metals Ltd, as part of its efforts to break the stereotype among potential customers.