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Toshiba said it has developed a high-iron-concentration samarium-cobalt magnet...

Toshiba said it has developed a high-iron-concentration samarium-cobalt magnet with properties superior to the heat-resistant neodymium magnets currently used in some motors. Toshiba’s samarium-cobalt magnets are free of dysprosium -- a rare earth mineral that’s a key component of heat-resistant…

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neodymium magnets -- which is in short supply and increasingly expensive, the company said. The samarium-cobalt magnet is designed for motors that need to combine high heat resistance with high performance and compact size, Toshiba said. The company said it has verified the performance of the new magnet in motors for autos, locomotives, machine tools and elevators, claiming it has achieved performance at a level that surpasses that of the heat-resistant neodymium magnet of the same size. Toshiba plans to start mass production of the magnet at the end of its fiscal year and promote its use “in all applicable equipment.” Toshiba didn’t respond to our questions about possible CE applications for samarium-cobalt magnets and whether they, or a derivative material, can substitute for neodymium magnets used in loudspeakers, cellphones and hard drives. Neodymium shortages resulting from quotas put in place by the Chinese government sent prices soaring exponentially last year, causing in some cases 10-20 percent pass-on price increases at retail (CED Aug 31 p1). The shortages also led CE manufacturers to hunt for neodymium substitutes. Harman was hit especially hard by the neodymium price hikes, which at one point last year had reached 1,000 percent, said CEO Dinesh Paliwal. In February, Paliwal blamed neodymium costs for a 3.5 percent margin decline in its Lifestyle division and a 1.1 percent margin drop in its Professional division during fiscal Q2. Paliwal said in its fiscal Q4 earnings call last week (CED Aug 13 p1) that Harman has weathered neodymium issues through price increases passed on to customers, although margins were still dinged by neodymium costs for the quarter in both Lifestyle and Professional divisions. He said Harman was in “advanced development” in material sciences to find a substitute “to replace neo with better acoustics capabilities and design changes,” and he didn’t elaborate on the material. Harman didn’t respond to questions about those substitute materials by our deadline.