Neodymium-Iron-Boron Magnet Applications Grow as Magnequench Reduces Material Prices.

Business Editors

ANDERSON, Ind.--(BUSINESS WIRE)--July 10, 2000

Neodymium-iron-boron (NdFeB) quenched powders used in the manufacturing of neodymium-iron-boron magnets are now available to a greater number of applications due to a cost reduction.

To spur innovation and encourage advancements in technology, Magnequench International, Inc. is committed to reducing the price of their MQP(TM) isotropic powders each year until 2005. As an example, the current price of the flagship MQP(TM) -B powder is US$40.00 per kilogram(a) and by 2005 the price will be no greater than US$25.00 per kilogram(a).

Magnequench's new powder plant in Tianjin China brings production closer to the source of raw materials, helping to drive down the overall cost of neodymium-iron-boron magnets. "Production in Tianjin will increase capacity ensuring our customers a greater supply of neodymium material while helping reduce their total cost," said Jim Fissinger, vice president of sales for Magnequench.

In the past, the market for neodymium magnets was limited by the high cost of the materials. A reduction in the cost of MQP isotropic powder expands the market for high-energy permanent magnets that was previously occupied by less expensive ferrite magnets. "A decrease in the price of NdFeB powder paired with the increased demand for higher energy magnets closes the gap between ferrite and NdFeB magnets," said Jake Ring, vice president of marketing for Magnequench. As the best-cost producer of NdFeB powder, Magnequench is continuing to reduce the cost of MQP powders providing designers greater opportunity to consider NdFeB in their applications.

NdFeB permanent magnets offer the highest energy density, which enables motors to have smaller size, greater torque and greater efficiency. No other permanent magnet offers this high performance at the lowest total cost, and now the leading innovator of NdFeB magnets and materials has committed to a long-term reduction in the price of NdFeB isotropic powders.

Although the component cost is somewhat higher than ferrite, the effect of a neodymium magnet's smaller volume, yet greater energy along with design and process flexibilities, allow it to lower the total cost of a product. These characteristics have revolutionized an engineer's ability to develop new products and improve existing designs across nearly all industries including automotive, appliance, factory automation, and consumer electronics.

Founded in 1985, Magnequench is the leading producer of neodymium magnetic materials, which provide superior magnetic energy for products in global markets including automotive, computer and office automation, consumer electronics, household appliances and handtools, and factory automation/industrial applications. NeoMag(TM) brand of permanent magnets from Magnequench deliver leading technical innovation for applications demanding high-energy and improved efficiencies. Magnequench is the best-cost producer of MQP(TM), neodymium-iron-boron isotropic powders used for making bonded magnets. Headquartered in Anderson, IN, Magnequench is an ISO 9002 Certified provider of global end-to-end magnetic solutions. For more information on Magnequench, the products or services, log onto www.magnequench.com or call 888-335-0258 within the USA, or (1) 765-648-5000 from international locations.

(a) The cost/kg presented is based on FOB Anderson, IN or ex-works Tianjin, China and does not reflect cobalt surcharges that may apply.