Advanced Magnet Lab has secured a USD$2 million contract from the Defense Logistics Agency to help strengthen the United States permanent magnet supply chain for defense applications.
The Florida-based private company said on Tuesday it will use the funding to qualify domestic high-grade sintered NdFeB PM-Wire magnets for military and commercial industries. Additionally, the project aims to expand U.S.-based manufacturing capacity for critical permanent magnet materials.
Advanced Magnet Lab, also known as AML, said the award supports a two-year contract focused on supply chain management, alloying and permanent magnet production. Furthermore, the agreement includes work on alloy composition optimization for magnet grades such as N48SH and N35EH.
The company plans to use advanced manufacturing techniques to improve magnet performance and accelerate industrial-scale production. Meanwhile, AML said its proprietary PM-Wire process simplifies permanent magnet manufacturing. It also allows for greater flexibility in magnet design and materials selection.
Permanent magnets play a major role in defense technologies, electric motors, renewable energy systems and electronics. However, the United States still relies heavily on foreign supply chains for many rare earth magnet materials and components.
AML said its PM-Wire process supports faster industrialization using existing magnet manufacturing infrastructure. Consequently, the company believes the technology can help domestic producers scale production more efficiently across several industries.
In addition to NdFeB magnets, AML is developing products using samarium iron nitride, manganese bismuth and anisotropic NdFeB materials. The company is also advancing Mischmetal-Nd FeB magnets designed to reduce dependence on critical rare earth elements.
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AML said the approach offers improved traceability for end-use customers seeking transparent sourcing of raw materials. Additionally, the company noted growing demand for traceable and domestically produced rare earth products in defense and commercial markets.
The company continues collaborating with several rare earth suppliers and processing groups in North America and Europe. Those partners include private rare earth producer Phoenix Tailings, Ionic Rare Earths Limited (ASX: IXR) and Momentum, a Texas-based critical minerals processing company.
Industry analysts expect demand for permanent magnets to rise sharply as governments and manufacturers expand electrification and defense production. Additionally, advanced magnets remain essential for high-performance motors, precision guidance systems and next-generation energy infrastructure.
The defense sector has become increasingly focused on domestic sourcing after years of dependence on Chinese processing and refining capacity. Consequently, U.S. agencies have accelerated funding programs aimed at rebuilding rare earth supply chains within North America and allied markets.
The push to rebuild domestic rare earth magnet production comes with these wider U.S. efforts to secure supplies of critical minerals tied to defense and industrial manufacturing. Additionally, companies across North America have accelerated projects tied to antimony, rare earth elements and strategic metals as governments seek alternatives to Chinese-controlled supply chains.
Recent examples include NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50) advancing antimony work at its Limousine Butte project in Nevada alongside broader U.S. efforts to strengthen domestic mineral security.
AML’s contract arrives as Washington continues supporting projects tied to critical minerals, advanced materials and strategic manufacturing technologies. Furthermore, the company’s focus on traceable supply chains could appeal to defense contractors seeking secure sourcing for sensitive applications.
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