Although the United States is making a few inroads to mininging and processing its own permanent magnetics materials, China dominates in rare earths. At one time, it mined, produced and shipped more than 90 percent of the world's permanent magnets...the same magnets that go in your smart phone, electric vehicle, our wind turbines for "green" energy, the satellites that protect our country and help with communications, speakers and electric guitar pickups to name a few.
Even a cursory search of the news will show that tensions between China and Western countries are at an inflection point. Given there is only one rare earths mining facility in North America--Mountain Pass, California--which, by the way is partly owned by its China processors and counts on China to process its product, and a few startup companies that won't be entirely online until future dates, the West is ultra-dependent on purchasing permanent magnets from China.
How long the market will be open, and what, if any restrictions this market will face, is speculative. AEC Magnetics was one of the first companies to purchase from China and we stay in close touch with our very trusted suppliers to keep our suppply lines runniing. We have tremendous sources, very trustworthy, who provide quality permanent magnets at fair prices. The shipping backups at the ports of Long Beach and Los Angeles can interrupt our inbound orders, as can the disruption to devanning and shipment by rail, but these seem to be working as normal for now.
What ths does mean is, no matter how many times each day we speak to our suppliers, there are many variables in the mining, manufacturing, processing and shipping process. Throw in the political clouds that form, at times, between China and the U.S,, supply is not completely in our control. Far from it. For this reason, we suggest--strongly--that if you anticipate permanent magnets or permanent magnetic tools, please consider advancing your orders.
Prices will, and do, fluctuate based on the conditions described, above, as well as the monsoon season in China each year. Toss in China's COVID 19 policy, which shut down at least half of its ports last year, and with it rearing its head this year, we feel that ordering now to lock in prices is essential to anyone depending on permanent magnets. We offer blanket service; you order in bulk, we'll spell out where the price breaks are for volume orders, and we'll release the number of magnets you want, on your schedule. This way you ensure your supply at a predictable price. Are we saying the price and availabiity are expected to change? We think so. It never stays the same. The only thing we guarantee is our sources get us the best magnets at a promised price. Please give Bill Klaus a call, or send him an email, to learn more. If it's magnetic...it's AEC!