An anonymous reader writes: Karl A. Gschneidner Jr., a senior metallurgist at the U.S. Department of Energy's Ames Laboratory, recently cautioned members of a Congressional panel that "rare-earth research in the USA on mineral extraction, rare-earth separation, processing of the oxides into metallic alloys and other useful forms, substitution, and recycling is virtually zero." To optimize the use of rare earths in current and future products, scientists combine rare earths with other elements to create alloys intended for specific purposes. Yet the United States and other nations have ceded much of this alloying knowledge to China, Gschneidner said.....[C]urrent methods used to manufacture the magnets produce hazardous byproducts. In contrast, the Ames Lab process eliminates production of these byproducts. Also significant, the Ames Laboratory process has the potential to enable the United States to produce neodymium-iron-boron magnets less expensively.