1,500 tons of rare-earth-free magnets set for annual US production, starting 2027

Niron Magnetics has secured a conditional commitment for a loan of up to $150 million from the US Department of War’s Office of Strategic Capital (OSC). Announced on August 7 by President Donald Trump in Washington, DC, the 20-year financing would fund construction and equipment at the company’s commercial-scale manufacturing plant in Sartell, Minnesota. The 287,000-square-foot facility is scheduled to begin operating in 2027 and produce up to 1,500 tons of rare-earth-free Iron Nitride permanent magnets annually. Niron says the project will create 175 jobs while giving US manufacturers a domestic magnet source for defense systems, data centers, robots, aircraft, electric motors and industrial equipment. Iron Nitride offers a different supply-chain strategy Conventional high-performance magnets often rely on rare earth elements processed overseas. That dependence exposes manufacturers to export restrictions, volatile prices and disruptions as demand rises across electrification, automation, artificial intelligence and military platforms. Niron’s technology instead uses domestically available iron and nitrogen. Developed at the University of Minnesota and scaled over 13 years, the process removes the need for rare earth mining, offshore separation and heavy rare earth inputs. “Permanent magnets are foundational to the technologies driving America’s economic competitiveness and national security,” said Jonathan Rowntree, CEO of Niron Magnetics. “This conditional commitment recognizes the importance of Niron’s rare-earth-free approach and the urgency of building domestic manufacturing capacity for a technology the world increasingly depends on,” he added. “We are accelerating commercialization of an American-developed magnet technology that offers manufacturers a domestic path to high-performance permanent magnets built without rare earth materials,” Rowntree continued. Magnets underpin AI, robotics and advanced motors Permanent magnets convert electrical energy into motion in motors and help generate electricity in energy systems. Their performance influences the size, efficiency and power density of equipment ranging from robotic actuators and factory machinery to aerospace systems and electric drivetrains. Data centers and AI infrastructure require magnets across cooling systems, power-management equipment and storage hardware. Domestic production could support multiple technology supply chains, while providing defense contractors with components less exposed to foreign controls. “Niron Magnetics is helping Minnesota lead the way in manufacturing to support our national security,” said Congressman Tom Emmer. “This conditional commitment from the Office of Strategic Capital will help Niron create approximately 175 high-quality jobs in Sartell, helping Minnesota’s economy grow and thrive. It’s great to see companies in our own backyard powering our economy and supporting our military,” he continued. A modular platform targets greater capacity The Sartell plant will combine material-to-magnet production under one roof and serve as the first stage of Niron’s modular manufacturing platform. The company is selecting a site for another US plant designed to produce 10,000 tons annually, with groundbreaking expected in 2028. Niron is scaling as global demand for permanent magnets is projected to rise from about 280,000 tons today to more than 600,000 tons by 2035. However, the loan is not final. It remains dependent on OSC completing due diligence, Niron securing a minimum equity investment, and the parties satisfying conditions before financing documents are signed. Recommended ArticlesAtharva is a full-time content writer with a post-graduate degree in media & amp; entertainment and a graduate degree in electronics & telecommunications. He has written in the sports and technology domains respectively. In his leisure time, Atharva loves learning about digital marketing and watching soccer matches. His main goal behind joining Interesting Engineering is to learn more about how the recent technological advancements are helping human beings on both societal and individual levels in their daily lives.