Niron rare-earth-free magnet plant signals shift in US magnet supply

Niron

Niron is building a rare-earth-free magnet plant in Minnesota that could reshape the US magnet supply chain. The new rare-earth-free magnet plant in Sartell will produce 1,500 t/yr of permanent magnets for critical industries. As a result, the rare-earth-free magnet plant strengthens efforts to reduce dependence on rare earth materials in strategic applications.

Rare-earth-free iron nitride magnets target high-growth applications

Niron’s new facility will supply magnets for data center cooling pumps, EV and auto motors, robotics and drones. It will also serve consumer electronics and defense applications, where stable magnet performance and secure supply are essential. The plant is scheduled to start operations in early 2027, giving customers a medium-term roadmap for sourcing. Niron’s magnets are based on iron nitride technology that uses abundant iron and nitrogen instead of rare earth elements. This iron nitride platform enables high magnetization while avoiding exposure to rare earth price volatility and export controls.

Investment, policy support and strategic implications for supply chains

Niron has already attracted strategic investors from the automotive and industrial sectors, including Stellantis and Magna. Meanwhile, technology and mobility players such as Samsung Ventures and Allison Transmission are actively evaluating products from the pilot line. These partners see rare-earth-free magnets as a potential hedge against supply disruptions in conventional NdFeB magnets. In addition, Niron secured a $52.2mn tax credit under the US Advanced Energy Project program. This support lowers project risk and aligns the plant with broader US industrial and energy policy goals. The company has raised $58mn in recent funding rounds to move from pilot-scale to commercial output. Together, this funding and policy backing position the plant as a cornerstone of a new domestic magnet ecosystem.

The Metalnomist Commentary

Niron’s move underlines how magnet technology is becoming a strategic battleground in clean energy, digital infrastructure and defense. If the iron nitride platform delivers on performance and cost, rare-earth-free magnets could gradually carve out share in sensitive applications. For metals markets, the project is another reminder that technology substitution can quietly reshape long-term demand for rare earths.