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They say all you need is love, but in fact, you need a lot of magnets, too. Computers, appliances, electric generators and cars are powered by permanent magnet motors. Yet, most of the permanent magnets that make our modern life possible rely on rare earth materials, which are expensive, unsustainable and typically mined and processed in China.

To fix this bottleneck, Minneapolis-based Niron Magnetics is producing a new kind of magnet that uses two abundant raw materials: iron and nitrogen. By taking rare earths out of the equation, Niron’s Clean Earth Magnets® provide superior cost and supply chain stability to the countless manufacturers that depend on reliable access to high-powered magnets.

Why it matters: According to Niron, the demand for rare earths for critical magnets is outstripping the supply, and the problem is only getting worse.

• “When you look at the amount of magnets that are needed over the next 10 years, it’s triple the amount that are available today,” said Niron Magnetics CEO Jonathan Rowntree.
• “There’s only enough rare earth materials to double the amount of rare earth magnets manufactured every year. So there’s going to be this big imbalance later this decade. We’re well positioned to [meet] the shortfall of permanent magnets using iron nitride technology.”

The value proposition: Niron’s technology has several exciting upsides, according to company leaders.

• First, it relies on materials that are far more abundant and accessible than rare earths.
• Second, the supply chains for components like nitrogen and iron salts are very stable—and not centered in China.
• Finally, the production of a kilo of rare earth magnets generates 2,000 kilos of waste, according to Niron. By contrast, the production of Niron’s rare earth–free magnets is much more environmentally friendly.
• “Depending on which part you look at, whether it’s water or waste or greenhouse gas emissions, our production process is between 70% and 90% more efficient than the current rare earth processes today,” said Rowntree. “We’re excited about solving the environmental burden from the energy transition.”

Next steps: Niron is planning its first large-scale production facility in the United States, a 10,000-ton facility that it hopes will be operational by 2027.

• While its leaders are still considering different locations for the plant, they anticipate that the facility will ultimately result in 680 to 700 full-time jobs, not including the construction and infrastructure roles needed to build it.

• “We’re growing very quickly here in terms of our capability,” said Rowntree. “We’ve doubled the number of employees this year, and we will likely double that number again over the next several years.”

The bottom line: “There’s a growing awareness of critical materials and the rare earth supply challenges, and the risks posed by U.S. reliance on China to supply those magnets. But there isn’t a lot of awareness around the fact that there is an alternative solution,” said Rowntree. “There is alternative technology that we’re aggressively scaling and that will be commercially available by the end of this year.”

Washington, D.C. – Today, the National Association of Manufacturers voiced manufacturers’ support for efforts led by Rep. Buddy Carter (R-GA) to bring much-needed reform and transparency to pharmacy benefit managers. The NAM is a champion for PBM reform given that these underregulated middlemen drive up health care costs for manufacturers and manufacturing workers.

Following a press conference hosted by Rep. Carter to announce a bipartisan effort with dozens of members of Congress to push for PBM reform in the lame-duck session of Congress, NAM Managing Vice President of Policy Chris Netram released the following statement:

“Manufacturers and manufacturing workers are facing increasing and unsustainable health care costs as a direct result of PBMs. Manufacturers agree with Rep. Carter and the bipartisan, bicameral members of Congress calling for reform: Congress must act urgently—in the lame-duck session—to increase transparency, lower health care costs and protect manufacturing workers.”

Background: Last month, the NAM launched a seven-figure video and digital advertising campaign urging Congress to pass PBM reform legislation this year.

The NAM’s Q3 2024 Manufacturers’ Outlook Survey found that 78% of small manufacturers with fewer than 50 employees cite rising health care costs as a primary business challenge—the top concern among small business respondents in the survey.

To view the NAM’s latest digital ad, click here.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org

The NFIB Small Business Optimism Index rose 2.2 points in October to 93.7, marking the 34th consecutive month below the 50-year average of 98. Meanwhile, the Uncertainty Index rose seven points to 110, the highest reading ever recorded. This high level of uncertainty is making small business owners hesitant to invest in capital and inventory, with 54% of owners reporting capital outlays in October and a net 9% of owners reporting inventory reductions compared to gains. However, uncertainty is expected to fall with the election over.

Although price increases have slowed in recent months, inflation is the top concern for small business owners, with 23% identifying higher input and labor costs as their primary issue. Filling job openings continues to be a top issue for small businesses. In October, 35% of small business owners reported jobs they could not fill, up 1% from September.

A net 26% of small business owners planned price hikes in October, up 1% from the month prior. A net 31% of small business owners reported raising compensation, down one point from September and the lowest reading since April 2021. Following the Federal Reserve’s September interest rate cut, a net 5% of owners reported paying a higher rate on their most recent loan, down 7 points from September and the lowest reading since January 2022. Profitability remained under pressure, mainly due to weaker sales.

The outlook for general business conditions remains negative but has improved significantly from earlier in the year. While small business owners are still facing unprecedented economic adversity, owners remain hopeful as they head toward the holiday season.

Manufacturing activity in New York state grew significantly across most indices in November, with the headline general business conditions index rising 43.1 points to 31.2, the highest reading since December 2021. The new orders index increased to 28.0, rising 38.2 points, and the shipments index grew 35.2 points to 32.5, reflecting sharp increases in both. Unfilled orders fell to -10.3, while inventories improved from -7.5 to 1.0. Delivery times lengthened slightly, while supply worsened to -4.1.

Despite the sharp increase in business activity, employment decreased slightly, with the index for the number of employees falling to 0.9 from 4.1. The average employee workweek improved some, from 4.7 to 6.1, signaling a slight increase in hours worked. Input and selling price diverged, as reflected in the prices paid index falling 1.2 points to 27.8 and the prices received index moving up 1.6 points to 12.4, which means some cost improvement for manufacturers that have been operating in a weakened pricing environment.

Although expectations for future business activity decreased 5.5 points to 33.2 after the previous month’s index hit a multiyear high (38.7), firms continue to feel optimistic about the future. The capital spending index also continued to increase, rising 3.7 points to 13.4 in November.

Industrial production fell 0.3% in October after declining 0.5% in September. The decline in October was influenced significantly by the strike of Boeing workers, with a smaller impact from the lingering effects of two hurricanes. Manufacturing output decreased 0.5%, with aerospace and miscellaneous transportation equipment dropping a dramatic 5.8%. At 102.3% of its 2017 average, total industrial production in October was down 0.3% from the same month last year. Capacity utilization fell to 77.1%, 2.6 percentage points below its long-term average from 1972 to 2023, but was up 1.2% from the same month last year.

In October, major market groups saw mixed results. Among consumer goods, the production of durables decreased 1.4%. On the other hand, the index for nondurables increased 0.4%, with growth in both energy and nonenergy goods. The business equipment index declined 2.7% in October, weighed down by the sharp 13.9% drop in the production of transit equipment, affected for a second month by the strike.

Durable goods manufacturing decreased 1.2%. Apart from the large drop in aerospace and miscellaneous transportation equipment, declines occurred in primary metals (down 3.3%), motor vehicles and parts (down 3.1%) and furniture and related products (down 1.1%), with slight declines in numerous other durable industry groups. Nondurable goods manufacturing, on the other hand, inched up 0.1% in October, with the largest gain in petroleum and coal products (up 0.9%) and the largest drop in printing and support (down 2.6%).

Manufacturing capacity utilization decreased 0.5% to 76.2%, which is 2.1 percentage points below the long-term average.

Nominations for the Manufacturing Leadership Council’s flagship awards are now open.

What’s going on: The Manufacturing Leadership Awards—given annually by the MLC, the NAM’s digital transformation arm—honor manufacturing companies and leaders for the groundbreaking use of digital manufacturing. Those interested in submitting company and/or individual names for consideration for the 2025 awards can do so through Jan. 17, 2025.

• Awards will be given in nine project categories and three individual categories. New for 2025 are Business Model Transformation (for projects) and Women in Manufacturing 4.0 (for individuals).

How they’re evaluated: For the individual categories, the judges—a panel of established digital manufacturing experts from outside the MLC—assess whether nominees have advanced digital transformation at their companies and whether they meet the criteria for being role models to other manufacturing leaders.

• For the project categories, judges evaluate how each undertaking improved manufacturing processes, furthered business goals and advanced company strategy.

What happens next: Finalists will be notified in March 2025 and announced shortly afterward. Winners will be announced at the Manufacturing Leadership Awards Gala next June.

• “The Manufacturing Leadership Awards give the MLC the chance each year to honor some of the remarkable people and endeavors in manufacturing today,” said MLC Senior Content Director Penelope Brown. “We look forward to reviewing the nominations and learning more about the incredible innovation taking place in our industry.”

Get involved: Have a person or project in mind for the 2025 Manufacturing Leadership Awards? Submit their names here.

• MLC members receive one complimentary project entry and one complimentary individual entry.

Nevada’s Thacker Pass lithium mine has received final approval on a $2.26 billion loan from the Department of Energy (Reuters, subscription).

What’s going on: On Monday, Lithium Americas—which is building the Thacker Pass lithium mine project in Nevada with a nearly $1 billion investment from General Motors Co.—closed on a loan from the DOE Advanced Technology Vehicles Manufacturing Loan program. The loan, which has a 24-year term, was approved provisionally in March.

• Thacker Pass, which broke ground in March 2023 just south of the Nevada–Oregon border, was approved at the end of the previous administration and is expected to open later this decade.

The big picture: “The funds are a key part of U.S. President Joe Biden’s efforts to reduce dependence on lithium supplies from China, the world’s largest processor of the electric vehicle battery metal,” according to Reuters.

• Last week, the Biden administration approved another lithium project, by developer Ioneer.

What to expect: “With the loan now closed, Vancouver-based Lithium Americas plans to start major construction, a process that could take three years or longer. The mine’s first phase is expected to produce 40,000 metric tons of battery-quality lithium carbonate per year, enough for up to 800,000 EVs.”

• The project is anticipated to create about 1,800 jobs during construction and 360 full-time jobs once it is up and running.

The Annual Meeting of the Members of the National Association of Manufacturers will be held Wednesday, September 25, 2024. The only agenda item to be considered during the annual meeting of the members will be the election of the NAM Board of Directors slate for the 2025–2026 term.

The meeting will begin at 9:00 a.m. ET and will conclude by 9:05 a.m. ET during the NAM Fall Board of Directors meeting. It will be a hybrid meeting taking place via Zoom and in-person for those attending the Fall Board meeting at the Salamander Washington DC.

Members who wish to vote on the Board slate must participate in the meeting, but you may designate a proxy who is able to participate. Proxies must be duly authorized by completing and returning this proxy form. No individual may serve as proxy for more than one person and no NAM employee may serve as your proxy.

To register, please contact Anne Marie Alaska, Director, Board Initiatives at [email protected].

Texas Instruments and HP are the latest recipients of CHIPS and Science Act funds meant to boost domestic semiconductor manufacturing (Bloomberg and Reuters, subscription).

What’s going on: Texas Instruments will receive $1.6 billion in grants and $3 billion in loans under the 2022 legislation (Bloomberg), while HP will get $50 million in grants (Reuters), the Biden administration announced last month.

• All the awards are pending finalization, and amounts could still change following due diligence by the Commerce Department.

Where it will go: The money will go to different undertakings at each company.

• At Texas Instruments, it “will help pay for one factory in Utah and two in Texas—projects that will cost about $18 billion through 2029—the Commerce Department said in a statement. The effort is expected to generate around 2,000 manufacturing jobs and thousands more in construction,” according to Bloomberg.
• The funding proposed for HP will go toward “projects that build on HP’s expertise in microfluidics and microelectromechanical systems with funding set to support manufacturing of silicon devices critical in life sciences lab equipment used in drug discovery, single-cell research and cell line development,” Reuters reports.
• The HP work is expected to create nearly 150 construction jobs and more than 100 manufacturing positions (MarketWatch).

Why it’s important: Most of the funds from the CHIPS and Science Act “is slated to support production of cutting-edge chips by companies such as Intel Corp. … But the law set aside a minimum of $2 billion for less advanced semiconductors—sometimes called legacy chips—like those produced by Texas Instruments. … Legacy chips are essential to the global economy, powering everything from smartphones to refrigerators to weapons systems. And it’s an area where China is increasing its ambitions,” according to Bloomberg.

• The majority of the measure’s funding has now been announced through more than a dozen proposed awards. Announcements are set to be wrapped up by the end of 2024.

The Senate on Thursday rejected a bipartisan tax package that would have reinstated three expired, manufacturing-critical tax policies (The New York Times, subscription). The NAM will continue its efforts to revive the provisions.

What’s going on: The Tax Relief for American Families and Workers Act failed 48–44 in a procedural vote, 12 votes shy of the 60 required for the bill to advance in the Senate.

• The measure would have restored immediate expensing for research and development costs, enhanced interest deductibility and 100% accelerated depreciation for capital equipment purchases.

Not giving up: The NAM is already at work on its 2025 tax campaign, Manufacturing Wins, through which manufacturers will continue the fight to restore these expired provisions.

• These policies began phasing down in 2022 and 2023, but even more devastating tax increases are scheduled for the end of 2025.
• Manufacturers have already been meeting with legislators to explain the importance of preserving the 2017 tax reform in its entirety—including vital provisions such as the corporate tax rate, the pass-through deduction and more.

What’s next: “Manufacturers look forward to working with Congress to restore these vital bipartisan provisions and prevent further tax increases on manufacturers as we enter the critical tax conversations of 2025,” the NAM said following the Senate vote.