Press Release

Electron Energy Corporation Wins Phase II Research Contract To Develop High Performance Permanent Magnets for Advanced Motors Used in Hybrid Electric Vehicles

Landisville, PA, (February 17, 2009) — Electron Energy Corporation (EEC), a leading US producer of rare-earth magnets, has been awarded a $750,000 Small Business Technology Transfer Research (STTR) contract by the Department of Energy (DOE) Office of Science, Argonne, IL. The announcement was made by Michael H. Walmer, EEC President.

The Phase II research contract (DOE Grant Award No. DE-FG02-07ER86308), which runs from August 2008 through August 2009, is for the development of high performance magnets and magnet technologies for advanced motors used in hybrid electric vehicles (HEVs). Phase II research will center on innovating a new class of permanent magnets with high magnetic performance, high resistivity, superior thermal stability and low cost. EEC successfully completed Phase I research in July 2008.

Dr. Jinfang Liu, an internationally-recognized expert on rare earth magnet materials and EEC Vice President of Technology and Engineering, will serve as the principal investigator and director of the research project. “Our goal is to design and develop nanocomposite magnets that can reduce eddy current losses and withstand high temperatures to improve the performance of electric motors for plug-in hybrid cars as well as conventional motors and generator applications,” Liu said. EEC will collaborate on the research and receive support from the University of Delaware under the leadership of Dr. George Hadjipanayis the Richard B. Murrey Professor of Physics and Chair of the Department of Physics & Astronomy.

“Our research will be critical for the development of plug-in hybrid motors that are more efficient, affordable and pollution-free,” said Walmer. “We are pleased to work with the DOE and are confident that the technologies we develop will help to decrease US dependence on foreign oil. Ultimately, this program aims to improve performance and significantly reduce the cost of vehicles powered by forms of energy other than those derived from fossil fuel.”

Liu said eddy current loss is a major consideration in some motor designs. In order to reduce the eddy current losses in motors caused by permanent magnets, designers typically use segmented magnets rather than single-piece magnets, which reduces the eddy current losses, but also increases the manufacturing cost.

Key components of Phase II research include: Improving the magnetic performance of high temperature magnets by compositional and process related modifications, as well as developing new hybrid magnets; reducing eddy current losses by increasing the electrical resistivity in new composite magnets which contain dielectric constituents; and decreasing costs by using less expensive raw materials and lower cost process procedures.

Peter Dent, EEC VP of Business Development, said EEC proposes to develop a new class of Sm-Co permanent magnets with an electrical resistivity five to 10 times higher than those of commercially available magnets and deliver superior magnetic performance. The high resistivity magnets, which are able to operate at temperatures above 200°C, will significantly reduce eddy current losses and keep the cost low for motor/generators systems.

EEC is the only company in the world to produce ultra-high temperature SmCo magnets capable of operating in the 350 to 550°C range and has broad US patent protection for this technology.  Competitive magnet technologies have energy products several times lower than EEC high temperature magnets. Since 1996, EEC has been granted 18 STTR or SBIR Phase I and Phase II programs, which resulted in three patents, as well as over 20 papers published in professional journals.

For more information about Electron Energy Corporation’s high-temperature magnet capabilities, call toll-free, 1-800-824-2735. Our staff of engineering specialists is available for free technical consultations and will travel to on-site meetings.

About Electron Energy Corporation
Electron Energy Corporation (EEC) offers unmatched expertise in rare earth magnets, assemblies and systems. Founded in 1970, EEC is a US supplier that develops and produces custom Samarium Cobalt (SmCo) and Neodymium-Iron-Boron (NdFeB) sintered permanent magnets, assemblies and systems. EEC is dedicated to improving rare earth magnet performance to meet the most technically demanding applications in aerospace, military, medical, electronics, and motion control markets. As world-renowned experts in material sciences, testing and 2-D/3-D Finite Element Analysis, our vertically integrated operation provides you with the full range of services to meet your magnetic needs. Visit www.electronenergy.com or call 800-824-2735.

About the HEV Industry
Total HEV demand for the world will be 4.5 million units by 2013. In 2003, there were already 94,000 units and in 2008 the number grew to 770,000. HEV growth is accelerating because of rising energy costs and increased emissions regulations. By 2013, HEVs are expected to represent over 6% of world light vehicle demand. Primary markets are expected to be within the Triad countries (i.e., the U.S., Western Europe and Japan), although there will be much larger gains for HEVs in the U.S. and Japan. In Europe, where car diesel demand already exceeds 40% of the total passenger car market, HEV growth is projected to be much slower. China may also be another strong market.