Molycorp Files for Bankruptcy as Rare-Earth Prices Drop

Molycorp Inc., the U.S. producer of rare earths used in electric cars and wind turbines, filed for bankruptcy with a plan to restructure debt after prices plunged.

The company’s plight mirrors the dramatic rise and fall of the rare-earth market over the past five years. Prices for the group of 17 metals -- including neodymium, lanthanum and cerium -- soared dramatically in 2011 after exports were curbed by China, the world’s largest supplier.