May 31 2010
Thomas & Skinner, Inc., the world’s leading manufacturer of cast and sintered alnico magnets, magnetic assemblies, and transformer laminations, today applauds the U.S. House of Representatives for approving an amendment to H.R. 5136, the Fiscal Year 2011 National Defense Authorization Act, that directs the Department of Defense to develop a plan to establish a secure domestic source of neodymium iron boron (neo) magnets.
Neo magnets are essential to numerous defense and renewable energy systems including wind turbines, hybrid-electric drive trains, computer hard drives and precision-guided munitions. The United States is today totally dependent on foreign supplies of neo magnets. China provides over 97% of the world’s rare earth raw materials, including neodymium iron boron, and dominates the world’s rare earth refining, alloying and manufacturing. Concerns are mounting that increased demand within China will begin to greatly restrict the export of such materials for use abroad.
“Total reliance upon foreign suppliers for military specific neo magnets is an urgent national security risk,” said Ed Richardson, Vice President, Thomas & Skinner. “The United States Congress is wise to immediately begin the process of restarting the domestic rare earth magnet supply chain, a process that will take three to five years at best, and Thomas & Skinner is proud to be considered a possible partner.”
An April 14, 2010 report by the Government Accountability Office has confirmed the United States is not currently producing neo magnets, a key rare earth material. Thomas & Skinner last manufactured neo magnets in the 1990s but is currently evaluating reentering the defense supply market by constructing a dedicated new facility on its urban Indianapolis campus.
Of potential domestic neo magnet suppliers, Thomas & Skinner maintains the important technical capabilities needed to successfully restart neo magnet production in the United States.
This key provision of the bill was included as an amendment offered by Rep. Mike Coffman of Colorado and Rep. Brad Ellsworth of Indiana. The Secretary of Defense is required to submit a plan to the House and Senate Armed Services Committee within 90 days of enactment of the final bill.
The House of Representatives is expected to approve their version of the bill on May 28th.
Source: http://www.thomas-skinner.com/