With the acceleration of economic and social green transformation driven by the promotion of the "dual-carbon" target, there has been a significant surge in demand for magnetic materials due to the booming development of low-carbon environmental protection industries such as new energy, wind power generation, and energy-saving household appliances. Magnetic properties are inherent in all aspects of both macroscopic and microscopic worlds, encompassing diamagnetic, antimagnetic, ferromagnetic, ferrimagnetic, and antiferromagnetic categories. Magnetic materials refer to substances composed of transition elements like iron, cobalt, nickel, and their alloys that can directly or indirectly generate magnetic fields. Ferromagnetic and ferrimagnetic substances find extensive applications in industrial production as well as daily life. The upstream sector of the magnetic materials industry involves metal ore mining operations including separation and smelting processes along with the preparation of magnetic powders; meanwhile, deep processing constitutes its middle stream; finally downstream encompasses traditional application areas like consumer electronics and power industry alongside emerging sectors such as new energy.

Magnetic materials constitute a crucial category of metal functional materials, possessing the capabilities to convert and transmit electrical energy, process electrical signals directly or indirectly, as well as store them. The advancement in magnetic materials aids in the miniaturization, precisionization, high-power density enhancement, and high-frequency utilization of electronic power devices. It plays an indispensable role in energy conservation and emission reduction while facilitating the realization of green manufacturing systems. Thanks to robust support from national policies, the development of magnetic materials has witnessed rapid progress. Based on local government support policies and representative enterprise distribution patterns, major manufacturers of magnetic materials are primarily concentrated in China's Yangtze River Delta region with additional presence in Beijing and Sichuan. Simultaneously, enterprises have adopted unique development models with products exhibiting limited substitutability but offering distinct technical advantages across various sub-fields.

Magnetic materials play a crucial role in the conversion of electrical energy, and the green transformation of the industry has become an inevitable trend. The government has established a favorable policy environment to facilitate the high-end development of the magnetic materials industry. In addition, outdated high-pollution capacities will be further eliminated while continuous technological advancements are promoted within the magnetic industry. Currently, rare earth permanent magnets, amorphous alloy materials, and nanocrystalline alloy materials are presented with a historic strategic development opportunity. Their downstream applications primarily encompass rare earth permanent magnet motors, inductor components, and transformers.

Inductive components, which are essential for storing electrical energy, rely on soft magnetic materials (such as soft magnetic powder cores) as crucial supporting elements in the field of power electronics technology. These materials play various roles including inversion (converting direct current into alternating current), chopping (converting direct current into direct current), variable frequency control (altering the power supply frequency), switching, and intelligent control. The technical research and development of these components is based on applied magnetism theory and closely intertwined with other disciplines such as physics, chemistry, electromagnetism, and powder metallurgy. They have become an indispensable part of modern high-tech fields and find wide applications in variable-frequency air conditioners, uninterruptible power supplies (UPS), photovoltaic power generation systems, new energy vehicles, and power quality rectification.

The traditional inductors are wound-type inductors, which consist of copper wires wrapped around a magnetic core. SMD molded inductors, also known as molded inductors, high current inductors, injection molded inductors, and molded power inductors, offer an upgraded alternative to the wound-type ones. They are manufactured by embedding conductive copper wire loops into a mold and filling it with magnetic powder before casting it. Due to their fully enclosed structure, SMD molded inductors provide excellent magnetic shielding and EMI performance while exhibiting strong resistance to electromagnetic interference. The rise of SMD molded inductors is primarily attributed to the increasing frequency of central processing units (CPUs) found within computers and smartphones since these devices are gradually transitioning towards smaller sizes, higher integration levels, more functionalities, and increased power requirements. With these emerging trends come heightened demands for power handling capabilities, size control precision, cost-effectiveness considerations as well as overall performance enhancements when it comes to selecting suitable types of inductor components. In this regard, SMD molded inductors excel by being able to operate continuously under high current environments while ensuring a stable power supply for CPUs. Their advantages include the ability to handle high currents effectively despite their compact size dimensions along with good temperature rise control characteristics that minimize audible noise generation during operation while simultaneously reducing electromagnetic interference levels significantly; all without compromising on impact resistance properties.

As semiconductor devices progress towards high power density and high frequency applications, the performance requirements for the accompanying magnetic inductive components also escalate to meet the power supply demands of these devices. Driven by such application needs, a novel type of magnetic component known as "chip inductor" has emerged. "Chip inductor" belongs to the category of molded inductors, which have traditionally been dominated by products utilizing ferrite materials. Ferrite materials, being a type of ceramic material, possess high magnetic permeability and low loss characteristics that make them suitable for high frequency applications. However, their saturation magnetic induction intensity is limited, thereby restricting their potential for miniaturization. With increasing demand for higher power density in downstream applications, ferrite materials used in small inductors are gradually being substituted with magnetic powder cores - a soft magnetic material that offers excellent comprehensive performance.

The major global manufacturers of integrated inductors primarily hail from the United States, Japan, and Taiwan. The top four manufacturers collectively account for over 80% of the global capacity, indicating a highly concentrated industry. In China, prominent integrated inductor manufacturers are predominantly located in Guangdong province. Presently, consumer electronics, new energy vehicles, and the emerging AI computing field serve as the primary application areas for integrated inductors. Market predictions suggest that by 2026, demand for integrated inductors will soar to reach a staggering 20 billion units.

The transformer is the primary tool for voltage conversion, serving as an electrical device that primarily aims to modify input and output voltage levels in order to facilitate the transmission and utilization of electrical energy. Between January and July 2024, the total export value of transformers reached 23.4 billion yuan, marking a significant increase of 27.9% compared to the same period in the previous year. According to statistical data from the General Administration of Customs, Hong Kong, the United States, Russia, Japan, and Mexico were identified as China's top five export markets for transformers in 2023. As part of an optimized and upgraded energy structure, electromagnetic energy conversion equipment such as transformers now face higher efficiency requirements along with greater power density and stronger environmental performance demands. This presents crucial strategic opportunities and vast market potential for the development of energy-saving transformers. At its core lies a vital component known as the transformer core which consists of thin sheets made from soft magnetic material stacked layer by layer. Given that transformers are required to transmit electrical energy over long distances, careful consideration must be given to material selection and preparation methods employed in constructing transformer cores so as to minimize energy loss effectively - particularly thermal losses associated with alternating current during electromagnetic induction processes. Presently in China's production landscape predominantly exists oriented silicon steel-based transformer cores supplemented by iron-based amorphous materials.

The production process of high-magnetic-sensitivity oriented silicon steel is relatively lengthy, with a narrow control window for process parameters, rendering it a complex and formidable undertaking. The product possesses a high degree of technological sophistication. Given these characteristics, achieving mass production of oriented silicon steel necessitates an exceptionally high barrier, demanding the company to possess robust manufacturing technology and process equipment capabilities. In April 2024, the price of oriented silicon steel experienced its first increase since the end of 2022, with Baosteel Stock Co., Ltd.'s B30G130 and B23R085 models witnessing a monthly average price surge of 1,766.22 yuan/ton compared to the previous month. Furthermore, there is currently a shortage in the market for high-grade oriented silicon steel products while demand continues to grow steadily. When compared to iron cores made from oriented silicon steel materials, those made from amorphous alloy strips exhibit distinct advantages in terms of energy efficiency improvement and conservation. Firstly, the production process for amorphous alloy strips is significantly shorter than that required for silicon steel and other materials; thus making it more energy-saving during material preparation processes. Secondly, amorphous alloys and their products possess properties such as high electrical resistance which can greatly reduce eddy current losses in magnetic devices during usage; thereby enhancing energy efficiency throughout their operational lifespan. Additionally, primary products derived from amorphous iron core production can be recycled without causing pollution; hence positioning it as an environmentally friendly material/product across its entire lifecycle. Expectations are that future new demands and replacement opportunities will continue to rise.

One of the most notable advantages of amorphous transformers is their significantly lower no-load loss, which is only about 40% compared to silicon steel transformers. This characteristic makes them highly suitable for new infrastructure scenarios characterized by cyclical and seasonal current patterns, as well as non-continuous electricity consumption. The new infrastructure primarily encompasses various applications such as 5G base stations, photovoltaic power grids, ultra-high voltage systems, industrial internet networks, inter-city high-speed rail and rail transit systems, new energy vehicles and charging stations, artificial intelligence technologies, cloud computing facilities, and big data centers. According to data released by the National Bureau of Statistics in 2022 compared to 2021 figures show continued growth in products related to new infrastructure with a 15.9% increase in urban rail vehicles and a staggering 100% rise in charging infrastructure numbers. The clean, environmentally friendly nature of the new infrastructure coupled with its low-carbon footprint brings forth fresh demands for high-efficiency and high-power-density power supply energy conversion solutions. Consequently, the construction of this novel infrastructure paves the way for extensive application opportunities utilizing amorphous materials.

e-mail：steven.shu@evergrowrs.com