Niron Magnetics Secures USD 150 Million Loan for Rare-Earth-Free Magnet Plant

On August 7, Niron Magnetics announced a commitment from the Department of War's Office of Strategic Capital for a USD 150 million loan with a 20-year term. The financing is intended to support construction and equipment for an advanced manufacturing plant in Sartell, Minnesota. The commitment would accelerate domestic manufacturing of Niron's proprietary Iron Nitride permanent magnets, which do not require rare earth materials, while expanding production of advanced permanent magnets in the United States. The announcement was made by President Donald Trump at the American Mining Industry gathering in Washington D.C., highlighting the government's focus on strengthening domestic production of high-performance permanent magnets.

Iron Nitride technology originated at the University of Minnesota and has been scaled by Niron over the past 13 years. Unlike conventional permanent magnets that can depend on rare earth materials, Niron's magnets use abundant, domestically sourced iron and nitrogen feedstocks. The conditional financing is designed to accelerate development of the company's first commercial-scale manufacturing facility for rare-earth-free permanent magnets. Located in Sartell, Minnesota, the 287,000-square-foot plant is scheduled to become operational in 2027. The facility is planned to consolidate production under one roof and is expected to manufacture up to 1,500 tons of rare-earth-free permanent magnets annually once operational.

Beyond the initial Sartell facility, Niron Magnetics plans to establish another manufacturing plant in the United States with substantially higher production capacity. The additional facility is expected to be capable of producing 10,000 tons of permanent magnets annually and is planned to break ground in 2028. Together, the projects represent an expansion of domestic advanced magnet manufacturing based on Iron Nitride technology rather than rare earth materials. The financing commitment therefore supports both the near-term commercial-scale plant and the company's longer-term production expansion plans. The development also aligns with efforts to strengthen domestic supply of high-performance permanent magnets and reduce reliance on rare-earth-dependent manufacturing routes.

Frequently Asked Questions

What is the USD 150 million financing commitment for Niron Magnetics?
The financing commitment is intended to support construction and equipment for Niron Magnetics' advanced manufacturing plant in Sartell, Minnesota, which will produce rare-earth-free permanent magnets. The loan commitment from the Department of War's Office of Strategic Capital has a 20-year term and is designed to accelerate domestic manufacturing capacity. The facility is scheduled to become operational in 2027 and is expected to produce up to 1,500 tons of rare-earth-free permanent magnets annually. Niron also plans a second United States manufacturing facility with 10,000 tons of annual capacity.