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US firm receives contract for manufacturing fully indigen...
Aditya Jadha · 2026-05-20 · via Interesting Engineering

In 2024 as per IEA, China accounted for around 60% of global mining output for rare earths used in magnets which include Neodymium, Praseodymium, Dysprosium and Terbium.

The US Defense Logistics Agency (DLA) has awarded Advanced Magnet Lab (AML) a $2 million contract for the qualification of domestic high-grade sintered Neodymium Iron Boron (NdFeB) permanent magnets for defense applications.

The work performed under this two year contract includes supply chain management, alloying, and permanent magnet manufacturing (including alloy composition optimization for NdFeB magnet grades such as N48SH and N35EH).

Neodymium-iron-boron (NdFeB) magnets are essential components for missiles, smart bombs, UAVs, and aircraft. NdFeB magnets enable the miniaturization of guidance, propulsion and power systems due to their weight to magnetic power ratio. Design of many current and future defense systems are based around motors and generators whose reduced size and weight and increased efficiency and performance can only be achieved using NdFeB magnets.

Company overview

AML is headquartered in Melbourne, Florida. It was founded in 1995 as a research and development lab to develop magnet technology for particle accelerator applications. Since then it has expanded into aerospace, renewable energy, transportation, and medical sectors. AML is a privately held company funded through strategic government engagements as well as private capital.

The company`s specialty is its propriety PM-Wire manufacturing process which simplifies the production of permanent magnets as well as expands the possibilities for magnet design (which includes different shapes like straight, curved, ring or helical as well as magnetization patterns like axial and radial), materials, and performance characteristics. The manufacturing process is continuous and automated by design, and is built for industrial scale production.

AML is also developing permanent magnets with a number of other magnet materials and magnet alloys. These include Samarium Iron Nitride (SmFeN), Manganese Bismuth (MnBi), anisotropic NdFeB (bonded materials), and (Mischmetal-Nd) FeB. In particular, AML’s approach with (Mischmetal-Nd) FeB allows for permanent magnets with less critical rare earth elements and clear traceability of inputs for end-users.

Supply chain

AML is collaborating with a group of leading U.S. and European rare earth suppliers to utilize the domestic feed stock pathway listed under this contract. These strategic partners will provide the feed stock for rare earth oxides and metals, required for magnet production.

Some of the AML`s strategic suppliers include Phoenix Tailings, Momentum and Ionic Rare Earths Limited. Phoenix Tailings is a leading U.S.-based rare earth metals producer building a stable, rare earth supply chain from tailings to metal. It will serve as a strategic supplier of NdPr and Dy metals in the program. Momentum a Dallas based critical minerals processing company with its proprietary MSX refining platform, will likely serve as a supplier of NdPr oxides.

Ionic Rare Earths Limited is a miner, refiner and recycler of sustainable and traceable magnet and heavy rare earths. It is rapidly expanding their magnet recycling footprint across Europe and the US, and will serve as a strategic supplier of NdPr and Dy oxides.

Geopolitical significance

According to International Energy Agency (IEA) China accounts for an estimated 94% of the global rare earth permanent magnet manufacturing and production capacity. Making China the world’s single largest supplier of this component critical to the manufacturing of the most powerful motors that are used for many cutting-edge applications in defense, energy, transportation and AI data center applications.

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