USMMA: Working to Ensure Domestic Production of High Performance Magnets

Ed RichardsonPresident USMMA

Technology Metals Summit 2013

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Magnet Development

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Permanent Magnets Available Today

Alnico Ferrites

Samarium Cobalt

Neodymium Iron

Boron

Highest Temperature

Lowest Cost

Highest Maximum

Energy Product

High Temp / High Max

Energy Product

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Permanent Magnets Available Today

Alnico Ferrites

Samarium Cobalt

Neodymium Iron

Boron

Generally Considered “High Performance”

Highest Temperature

Lowest Cost

Highest Maximum

Energy Product

High Temp / High Max

Energy Product

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Who Produces Them in the U.S.?• Alnico Magnets

▫ Thomas & Skinner Indianapolis, IN 170 employees

▫ Permanent Magnetic Corporation Indianapolis, IN 50 employees

▫ Arnold Magnetic Technologies Marengo, IL 140 employees

• Samarium-Cobalt▫ Electron Energy

Corporation Landisville, PA 100 employees

• Hard Ferrites▫ Hoosier Magnetics, Inc.

(ferrite powder) Ogdensburg, NY 50 employees

• Neodymium-Iron-Boron▫ Hitachi Metals (planned)

China Grove, NC 130 employees

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How They Are Made: Casting

Pour molten metal into

molds

Heat treat

Grinding

Inspection

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How They Are Made: SinteringCast Alloy &

CrushPress

PowderSinter

Heat Treat

Grinding

Inspection

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High-Performance Magnets: Commercial Use• Aerospace

▫ Motors▫ Sensors▫ Switches

• Medical▫ Transducers

• Industrial▫ Motors/generators▫ Guitar pickups▫ Instrumentation

• Oil and Gas Exploration▫ Sensors

Aerospace

Industrial

Oil Exploration

Medical

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High-Performance Magnets: Military Use

AGM-114 “Hellfire”

Excalibur Artillery Shell

JDAM Assembly

F-22A RaptorAIM-9X

Phalanx CIWS

AESA RadarsBlack Hawk Helicopter

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Military Requirement for Domestic Sources: Some, Not AllHard (Permanent) Magnets Soft Magnetic Materials

• Four general types:▫ Alnico▫ SmCo (Rare Earth)▫ NdFeB (Rare Earth)▫ Hard Ferrites

• Multiple types, including: ▫ Electrical Steel

▫ Powdered Iron▫ Soft Ferrites

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Why Do We Need A Secure Supply?• Vietnam War

▫ Sony withheld cameras used to guide tactical missiles

• 1983▫ Socialists in the Japanese Diet blocked the sale of

ceramic packaging used in U.S. cruise missiles

• 2002 ▫ Hellfire Missile production stopped during West

Coast dock strike Critical parts sourced in Japan were awaiting off-

loading

• 2003▫ JDAM bomb production stopped during Iraq war

because Swatch Group refused to ship critical part Disagreed w/ Bush Administration foreign policy

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Why Do We Need A Secure Supply?•Critical to our economy

▫Innovation is a key trait of the companies listed in the Business Week 50, an annual ranking of the top-performing companies in America

•Critical to a strong military▫Weapons systems typically built with new,

innovative technology and materials“Innovation remains a powerful engine of success”

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Case study: NdFeB Magnets and Innovation• “Offshoring technology innovation: A case

study of rare-earth technology,” Fifarek, Veloso and Davidson, Journal of Operations Management, Vol. 26, 2008

▫Shows that once the domestic bonded neo magnet industry went to China, innovation by US industry involving bonded neo magnets decreased dramatically.

▫Number of patents involving bonded neo magnets dropped precipitously.

Without the ability to manufacture,

we lose the ability to innovate.

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U.S. Production is Vital•Develop unique materials for mission

specific DOD requirements, U.S. market needs, AND commercialize.

•Interest and ability to work with high performance, small production runs.

•China has become a critical US defense supplier.

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Summary• U.S. magnetic materials industry is alive.

• 10 U.S.C. 2533b “Specialty Metals Clause” applies to the high performance magnets.

• High performance magnets are strategic materials in high-profile legacy and emerging weapon systems.

• U.S. defense supply chain needs domestic, advanced, and specialized magnet technology capabilities for unique military requirements.

• Supply Chain Security works for the Defense Department

• The US military should not become dependent on China for its defense systems

Ability to manufacture = ability to innovate

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Questions?Ed Richardson

President USMMA

(317) 923-2501 [email protected]