Niron Magnetics Wins Conditional $150 Million Loan Commitment for Rare Earth-Free Magnet Plant
The Defense Department loan would fund a 287,000-square-foot facility in Minnesota scheduled to begin production by 2027.
Niron Magnetics has received a conditional loan commitment of up to $150 million from the US Defense Department's Office of Strategic Capital (OSC) to build its first commercial-scale plant for rare earth-free permanent magnets in Sartell, Minnesota.
What Happened
The OSC's conditional commitment would provide a direct loan over a 20-year term. The funding would support construction and equipment at Niron's planned 287,000-square-foot facility, which the company describes as the first step in a modular manufacturing platform. According to OSC estimates, the plant's total cost is $605 million. The Sartell site is scheduled to be operational by 2027 and would bring material-to-magnet production under one roof, producing up to 1,500 tons of rare earth-free permanent magnets annually using iron and nitrogen rather than neodymium, dysprosium, or terbium. Niron states its supply chain involves no rare earth materials, no offshore separation, and no heavy rare earth exposure, with domestically sourced iron and nitrogen feedstocks. The company is also conducting final site selection for a second US plant capable of 10,000 tons of annual capacity, expected to begin construction in 2028.
Why It Matters
Permanent magnets are essential components in EV traction motors, and most rare earth permanent magnets used in electric vehicles are currently produced overseas. Niron's technology offers manufacturers a domestic alternative that eliminates reliance on rare earth materials such as neodymium, dysprosium, and terbium—commodities subject to geopolitical supply chain risks. Motor makers including YASA are already developing designs that use less or no rare earth material, reflecting broader industry interest in reducing exposure to these materials.
The Bottom Line
Niron Magnetics has a conditional commitment for up to $150 million in federal loan support for its first commercial-scale plant producing rare earth-free Iron Nitride magnets. If built as planned, the Minnesota facility would begin production by 2027 with annual capacity of 1,500 tons, serving markets including electric vehicles, defense systems, data centers, and industrial automation.
