The US Department of Commerce announced on September 24 that it had initiated a “232 investigation” on whether imports of Neodymium-iron-boron permanent magnets (Neodymium-iron-boron permanent magnets) harm the national security of the United States. This is the first “232 investigation” initiated by the Biden administration since taking office. The US Department of Commerce stated that NdFeB permanent magnet materials are used in critical national security systems such as fighter jets and missile guidance systems, key infrastructure such as electric vehicles and wind turbines, as well as computer hard drives, audio equipment, magnetic resonance equipment and other fields.

In February of this year, US President Biden ordered federal agencies to conduct a 100-day review of the supply chain of four key products: semiconductors, rare earth minerals, large-capacity batteries for electric vehicles, and medicines. In the 100-day survey results submitted to Biden on June 8, it is recommended that the US Department of Commerce assess whether to investigate neodymium magnets in accordance with Article 232 of the Trade Expansion Act of 1962. The report pointed out that neodymium magnets play a key role in motors and other equipment, and are important for national defense and civil industrial applications. However, the United States is heavily dependent on imports for this key product.

The relationship between neodymium iron boron magnets and motors

Neodymium iron boron magnets are used in permanent magnet motors. Common permanent magnet motors are: permanent magnet DC motors, permanent magnet AC motors, and permanent magnet DC motors are divided into brush DC motors, brushless motors, and stepping motors. Permanent magnet AC motors are divided into synchronous permanent magnet motors, permanent magnet servo motors, etc., according to the movement mode can also be divided into permanent magnet linear motors and permanent magnet rotating motors.

The advantages of neodymium iron boron magnets

Due to the excellent magnetic properties of neodymium magnet materials, permanent magnetic fields can be established without additional energy after magnetization. The use of rare earth permanent magnet motors instead of traditional motor electric fields is not only high in efficiency, but also simple in structure, reliable in operation, small in size and light in weight.  It can not only achieve the high performance (such as ultra-high efficiency, ultra-high speed, ultra-high response speed) that traditional electric excitation motors cannot match, but also can meet the specific operation requirements of special motors such as elevator traction motors and automobile motors. The combination of rare earth permanent magnet motors with power electronic technology and microcomputer control technology improves the performance of the permanent magnet rotor and transmission system to a new level. Therefore, improving the performance and level of supporting technical equipment is an important development direction for the automotive industry to adjust the industrial structure.

China is a country with a large production capacity of neodymium magnets. According to data, the total global production of neodymium magnets in 2019 is about 170,000 tons, of which China’s production of neodymium iron boron is about 150,000 tons, accounting for about 90%.

China is the world’s largest producer and exporter of rare earths. Any additional tariffs imposed by the United States must also be imported by China. Therefore, the US 232 investigation will basically not have any impact on China’s electrical machinery industry.

Reported by Jessica