“Effective” – “Do the Right Thing”

“Effective” – “Do the Right Thing”

• “Effective” – “Do the Right Thing”

• Provide customer value

• Fulfill a need
• Better Performance
• Lower Cost
• Realistic expectations

• Solutions MUST make sense commercially

• Sustainable manufacturing & supply chains

• Environmentally responsible

EEC’s Beginnings

• Marlin Walmer - innovator and pioneer in magnet materials Founded Electron Energy Corporation in 1970

• First non-captured commercial Samarium Cobalt (SmCo) producer in the world

• Last US Rare Earth magnet producer (Samarium Cobalt or Neodymium Iron Boron - NdFeB)

About EEC

• Landisville, PA – 40,000 sq ft single site

• 118 employees

• Small Business

• One Modern Manufacturing Site

• Samarium Cobalt magnet producer

• ISO 9001:2000 Certified

• Compliance with DOD Domestic Preferences of Specialty Metals (DFARS 225.252-7003, 7008, 7009)

• Defense Directorate of Trade Controls Registered

This matrix was devised by the U.S. National Academies and published in 2008 in Minerals, Critical Minerals, and the U.S. Economy (2008). The matrix preceded by a detailed explanation of the conclusions from which it was created is (free) on the Internet at http://books.nap.edu/openbook.php?record_id=12034&page=165#p200140369960165001

• This matrix was devised by the U.S. National Academies and published in 2008 in Minerals, Critical Minerals, and the U.S. Economy (2008). The matrix preceded by a detailed explanation of the conclusions from which it was created is (free) on the Internet at http://books.nap.edu/openbook.php?record_id=12034&page=165#p200140369960165001

Market is growing due to automotive & more uses, miniaturization

• Market is growing due to automotive & more uses, miniaturization

• People pay lots more for better magnet performance ($5.4/kg Ferrite, $90/kg Nd)

• Smaller magnets make smaller less costly systems

• Lower systems costs will increase market

• “More electric” means more magnets

• China REE worldwide reserves

• 2 years ago over 50%
• today substantially less
• Reason, more discoveries

• 100 plus potential sites for REE’s discussed for development worldwide

• 5-6 new non-Chinese mining operations will likely be developed

• Lots of investment is flowing to major REE producers

• well funded
• Downstream supply chain needs
• Non-Chinese customers, OEM’s

Forecast Global Demand for Individual Rare Earths in 2014 (±15%)

• Forecast Global Demand for Individual Rare Earths in 2014 (±15%)

• (Im)balance of Supply-Demand

What will be impact of new RE applications (wind power, Li vs. NiMH batteries, lighting, MCE refrigeration, To Be Invented) ?

• What will be impact of new RE applications (wind power, Li vs. NiMH batteries, lighting, MCE refrigeration, To Be Invented) ?

• 1000’s of REE applications, how many can be helped?

• Who will make it to market profitably & sustainably grow over time?

• What will China do? –Wildcard factor, SEO’s

• Can private sector fix problems alone?

Stockpile raw materials – price/availability disruptions

• Stockpile raw materials – price/availability disruptions

• Mitigate/Replace REE usage (short-medium term)

• Incremental Process improvements (Kaizen – Japan NdFeB)
• Better magnet technology (same flux with less material) => mitigate
• Hi electrical resistivity NdFeB, SmCo (DOE)
• Nanocomposites (NdFeB, SmCo) add 30% Fe
• New magnet systems (non REE)
• Leapfrog, disruptive technologies

• Develop / Adopt Recycling with ROI

• Develop applications for Ce, Sm, Pr and others in over supply – grow business

• Secure long term reliable, sustainable supply

• Develop & recruit people to innovate

• Engage with US government to affect appropriate REE policies

• Move from Studies => Resource Allocation & Action

• Multi faceted, balanced, realistic public policy approaches & expectations

• Be EFFECTIVE

Electron Energy Corporation

• Electron Energy Corporation

• 924 Links Avenue

• Landisville, PA 17538

• [phone]