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This lecture discusses the relationship between magnetic induction and magnetic field strength in permanent magnets. Starting with a simple case of an external permeance, the instructor derives equations using Ampère's law and the flux equation. The concept of operating point is introduced, showing how it can be determined for different external permeances. The lecture also covers the impact of temperature on magnet demagnetization and the calculation of new operating points when changing external permeance. The importance of understanding the magnet's characteristics and the process of magnetization is emphasized, highlighting the need to consider non-linear characteristics in certain scenarios.