US Magnet Materials Association The US Magnet Materials Story - - PowerPoint PPT Presentation
US Magnet Materials Association The US Magnet Materials Story Past-Present-Future What do Magnets do? Move and direct Electrons Provide Magnetizing & Mechanical forces Electromagnets - need electrical current Coil &
– Coil & “soft magnetic materials” – Normal copper & superconductor
– “Hard magnetic materials”
Max Energy Product (MGOe)
Varying Magnetic Strengths (MGO)
10 20 30 40 50 60 Ferrite Aluminum Nickel Cobalt Samarium Cobalt Neodymium Iron Boron
Rare earths
Inertial Guidance Electronic Warfare Microwave Communications (ship-shore, ground-
Motors (hydraulic systems, motion control) Generators (power for aircraft, ships) Space (actuators, electric propulsion) Nuclear reactors (pumps, control rod actuators)
Missiles
–
Trident, Minuteman IV, Patriot, PAC III, Tomahawk Cruise Missiles, JDAM’s, Hellfire missiles, Harpoon Anti-ship
Navy
–
Aegis radar, Virginia Submarines, CVN, DDX, LCS, UUV’s, support “all electric ship” technologies, Firefinder RADAR
Army
–
M1A1 tanks, Bradley A3 and FIST, Paladin Howitzer, AH-64 Apache, Striker Humvee
Air Force
–
F-15, F-16, F-18, B-52, Joint Strike Fighter
–
Unmanned Aerial Vehicles
WW Total Market Size $7.5B (2006)Projected $11B 2010 NdFeB magnets 75% (22% Japan) Rare Earth Oxide Ore production 94% (50% WW reserves) Rare Earth pure Metals nearly 100% Hard ferrites 85+ % Over ½ WW Alnico & SmCo production Japan, US, European producers close plants, move production CHINA
$0 $2,500 $5,000 $7,500 1985 1990 1995 2000 2005 2010
Year US Dollars (in millions)
AlNiCo SmCo Ferrite NdFeB
Market is
growing due to automotive & more uses, miniaturization
Chinese are
main beneficiaries of growth
China will
increase share & dominance
Data courtesy of Webmagnetics.com
China deflates price Artificial Chinese pricing
makes US un-competitive
Export subsidies provided Over capacity within China Critical Loss of Knowledge
base
Gross Chinese Patent
Infringement
50 100 150 200 250 1985 1990 1995 2000 2005 2010
Year US$/kg
AlNiCo SmCo Ferrite NdFeB
Data courtesy of Webmagnetics.com
1965-1985
1985-1990
1990-2000
2002 Last US
Source: US Geological Survey
Relative Average Selling Price
0% 50% 100% 150% 200% 250% 300% 350% Jan-05 Mar-05 May-05 Jul-05 Sep-05 Nov-05 Jan-06 Mar-06 May-06 Jul-06
La Ce Pr Nd
price minimums
violations to price minimums (14 July 2005)
invest on added capacity
reported
customers mandated at sub market level
implications of price increases having positive effects
–
1989 $42/kg
–
2003 $8/kg
–
2006 $28/kg
–
2007 $52/kg
–
2008 $40/kg Sources: metal-pages.com, China Rare Earth Information Center
–
world’s richest rare earth reserves
–
–
former GM subsidiary
–
–
acquired from GE in 1990’s
Remaining US permanent magnet producers:
Alnico Magnets
–
Indianapolis, IN
–
170 employees
–
Indianapolis, IN
–
50 employees
Samarium Cobalt
–
Marengo, IL
–
140 employees
Hard Ferrites
–
Ogdensburg, NY
–
50 employees
–
Landisville, PA
–
100 employees
If domestic magnet industry disappears, who will develop unique materials for mission specific DOD needs AND commercialize?
– Sony withheld cameras used to guide
– Socialists in the Japanese Diet blocked the
– Hellfire Missile production stopped during West
critical parts sourced in Japan were awaiting off-loading
– JDAM bomb production stopped during Iraq war
disagreed w/ Bush Administration policy
2007
– Specialty metals removed from the Berry Amendment (10
U.S.C. 2533a) and codified separately at 10 U.S.C. 2533b
– Clarified application to high-performance magnets
2008
– Revised specialty metals clause
exempts COTS (except for high-perf. magnets) includes a 2% de minimis rule (except for high-perf. magnets) Allows market basket approach to compliance
– A contractor may certify that an appropriate percentage of
material is of domestic origin.
2007 Defense Authorization Bill
– Exempts electronic components
whose specialty metals content is de minimis in value
compared to the overall value of the lowest level electronic component produced that contains such specialty metal.
– Establishes a Strategic Materials Protection Board
Shall determine need to provide a long term domestic supply
Results: Relief for key concerns
Small electronic components (solders, resistors, etc.) Small hardware issues (nuts, bolts, fasteners, etc.) Specifies application only to military systems One time amnesty 16 November 2006 (with compliance plan)
2008 Defense Authorization Bill
– Expands the electronic components relief to give
complete exemption
– Criticality of the domestic high-performance magnet
industry to national defense noted
“The conferees note that high-performance magnets have been fully
Department continues to procure such magnets from domestic sources whenever possible and consistent with this section.”
– Requirement that 100% of the high-performance magnets
used in military specific weapon systems be procured from domestic sources.
2008 Defense Authorization Bill
– Commercial-Derivative Military Articles
Weapon systems produced from a predominantly
commercial platform
Manufacturers must procure a majority of their high-
performance magnet material from domestic sources.
– Known as a “Market Basket”
Requires a certification from the prime contractor that
they procured a qualifying amount of metal from domestic high performance magnet makers.
The greater of the equivalent of 120% of the weight of
magnets used in military articles or 50% of the weight of all magnets used in both commercial and military articles.
2008 Defense Authorization Bill
De Minimis exception
– Allows producers a 2% margin or error in compliance
with the specialty metals clause
– Does not apply to high performance magnet material
Three general types:
– Alnico – Rare Earth
SmCo NdFeB
– Hard Ferrites
Multiple types, including:
– Powdered iron – Soft Ferrites
– Electrical steel
“There is oil in the Mid d le Ea st. There a re ra re ea rths in China . W e m ust ta ke full a d v a nta ge of this resource.” Deng Xiaoping, 1992
Ed Richardson – Thomas & Skinner – off (317) 418-0137 x 116 cell (317) 920-6170
Web www.thomas-skinner.com Peter Dent – Electron Energy Corp
Web www.electronenergy.com