Molycorp shares up 15 percent on Hitachi Metals accord

BOSTON (Reuters) - Shares of Molycorp Inc (MCP.N) rose 15 percent on Tuesday after the U.S. producer of rare earths said it reached a joint venture with Hitachi Metals Ltd (5486.T) to produce the materials used in products from computer hard drives to wind turbines.

Molycorp shares were up $6.10 to $45.35 on the New York Stock Exchange, easing off an earlier peak of $45.67, their highest since the company's summer initial public offering.

Prices have surged for these minerals, used in everything from iPods to fluorescent light bulbs, since authorities in Beijing slashed their rare earth exports by 40 percent this summer, saying China needed them for its economic development.

Japanese companies, which bore the brunt of China's action, have been scrambling to secure reliable supplies of the minerals.

Earlier this month, Sumitomo Corp (8053.T) agreed to invest $130 million in Molycorp to secure a seven-year supply of the materials. In November, Sojitz Corp (2768.T) reached a procurement deal with Australian miner Lynas Corp (LYC.AX).

The venture between Greenwood Village, Colorado-based Molycorp and Japan's Hitachi will focus on neodium-iron-boron allows and magnets.

Molycorp shares have more than tripled in value since the company's IPO.

(Reporting by Scott Malone. Editing by Robert MacMillan)