It's true! How odd this may sound, this has been done. You might think it's an utter and complete waste of money, but it's research and some even think this will have applications in consumer electronics

Apparently what's noded on magnetism is a bit brief, so until that's improved upon I'll give you the short version here. In short magnetism is created by electrically charged particles in motion. Naturally magnetic materials are created by electron movements around the atomic nuclei and by their spin. The magnetic field surrounding earth is believed to originate from streams inside our planet. Magnets are always dipoles, meaning that they always have a "north pole" and a "south pole". Because of this, the magnetic field lines are always closed loops, which also is why when you break a magnet you will always have two new magnets. 

Magnets are manufactured by taking naturally magnetic metals, melting them and then crushing it into a fine powder. Every tiny grain is then a small magnet with a north and south pole. Then they are put in a magnetic field, aligning them correctly at the same time as they are joined back together. 

Anyhow, it is now reported in the scientific magazine Physical Review Letters, in the September 17 issue, that a group of Japanese researches at High Energy Accelerator Research Organization in Tsukuba have done exactly what this node title says, having created a nonmagnetic magnet. As I said above, magnetism is created by both electron movements in their orbitals around the nuclei and their spin. These two contribute to the total magnetism. What the team lead by Hiromichi Adachi did was that they created an alloy of aluminum and samarium. The idea was to find a material where the orbital and spin magnetism would be equal in force but opposite in direction. Samarium is a rare-earth element where the spin and orbital energy is dependant on temperature. 

After having magnetized the SmAl2 alloy at very low temperatures, they found that at 70 degrees Kelvin, the magnetic field dropped to zero! This was because the spin and orbital components would cancel each other out. 

The use of this is of course not obvious, but it has been suggested that they would be used on devices that use electron spin instead of charge. Today everything that is using electricity uses the charge of electrons. The other fundamental property of an electron is spin, which until recently never have been used in consumer products. It is believed that this will be useful in circuit electronics.

Source: Scientific American

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