AEC Industrial Magnetics Manufacturing

4699 Interstate Drive
Cincinnati, OH 45246

Demanding Magnets
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Demanding Magnets

Permanent & Electromagnets for Automation | AEC Magnetics

Rare Earth Disks 300 2The world is demanding more permanent magnets.  A report just published by IndexBox says consumers’ growing appetite for electric cars and electronics is fueling the trend.     

China, permanent magnet supplier to the world, is also one of its biggest consumers. Its New Energy Vehicle, or NEV, Industry Development Plan is expected to account for 20-percent of the country’s total vehicle sales by 2024.  Last year, NEVs comprised less than five percent.  Permanent magnets are a key NEV component, used two to three times more by weight than internal combustion engine vehicles.electric car china

It’s not just cars. Permanent magnet demand is skyrocketing due to the rapid development, and increased use of, wind turbines, consumer electronics and household appliances.  China’s tablet computer production increased by 33% in just January through September 2020 alone.  The highest demand is for high-performance, lightweight neodymium iron boron (NdFeB) magnets. 

“China definitely holds all the cards in permanent magnets,” said Bill Klaus, president of AEC Magnetics. “For one, its government subsidizes the Chinese permanent magnetics market. The U.S. government is trying to subsidize rare earths and permanent magnet industries to reduce dependence on Chinese imports, but China dominates the world’s permanent magnet market.”

China owns $1.5 billion of the world’s permanent magnet market.  The United States is far behind at $866 million, followed by Germany which holds $513 million. These three countries combined hold almost $40 percent of the global market.  The next 10 countries combined represent 34-percent of the world permanent magnet market, as estimated by InfoBox:  Indonesia, Canada, the Philippines, Japan, Mexico, South Korea, Viet Nam, Thailand, India and Italy. 

tablet productionThat’s the supply side. The countries who use the most per capita are Germany, with 346 units per 1,000 persons; Canada at 275 per 1,000 and Thailand, 251 per 1,000. 

While China’s spike in NEV production spurs its consumption of permanent magnets, it also looms large as supplier to the world, comprising 51-percent of global exports.  The next highest exporter is Japan at 11-percent share of global exports, then Germany with less than seven percent.   

With demand rising at this pace, AEC’s guidance is for consumers to lock in current pricing, advance orders to ensure availability and to make certain suppliers are accurately representing the product, for instance, substituting lower grade material than promised.  We’ve been dealing with China longer than most anyone in the industry and work daily to maintain relationships with the most reliable suppliers. We know them on a first-name basis, and have trusted them for decades.”

Please check out our thousands of in-stock permanent magnets and permanent magnetic tools, ready to ship today.  And remember, if it’s magnetic, it’s AEC!