Could a magnet developed by a Minnesota venture disrupt rare earth element supply chains?

Hightlights

• Niron Magnetics develops rare-earth-free magnets.
• Their innovation could disrupt China’s monopoly on rare earths.
• Potential applications span from EVs to defense systems.

---

Why is this important?

Rare earth elements are used in a variety of critical components found across industrial sectors such as high tech and defense systems including the use of magnets. While America has a substantial abundance of rare earth elements, they can be costly to mine plus most of the refining and processing capacity occurs in China, which has secured a near monopoly on the critical minerals.

What has the company developed?

According to Frank Johnson, Niron’s chief technology officer, reports that one of the most important rare earth products is permanent magnets. Cited in National Defense (opens in a new tab) last month,

“What we’ve developed is a magnetic compound and a product, a magnet, that does not contain any rare earth element and thus is not subject to those supply constraints.”

Johnson went on the record at the National Defense Industrial Association’s recent Emerging Technologies for Defense Conference and Exhibition. The CEO continued “It’s also a more magnetically powerful compound, so it can potentially outperform rare [earth] magnets.”

What is the defense application?

Some defense systems need electric motors and actuators that, in order to get “very high-power density,” must use rare earth magnets reports the CEO to National Defense. Such magnets are also used in electric vehicle engines as well, civilian sectors.

The Company

Niron Magnetics is a U.S.-based company that focuses on developing and producing high-performance, rare-earth-free permanent magnets. These magnets are critical for a wide range of industries, including electric vehicles (EVs), renewable energy, consumer electronics, and industrial applications. Niron Magnetics stands out in the market for its innovative approach to addressing the global dependence on rare earth elements (REEs), which are currently dominated by China and face supply chain challenges.

Niron Magnetics specializes in creating permanent magnets that do not rely on rare earth elements like neodymium or dysprosium. These materials are commonly used in conventional magnets but are costly and have supply risks due to geopolitical and environmental concerns.

Niron uses iron nitride (FeN) as the core material for its magnets. This material has the potential to offer performance comparable to rare-earth-based magnets while being more cost-effective and sustainable, as iron is abundant and easily sourced.

Niron’s proprietary Clean Earth Magnet™ technology is based on iron nitride. This compound has been shown to have strong magnetic properties, potentially offering a rare-earth-free alternative for high-performance applications.

Iron nitride magnets have the advantage of being more stable at high temperatures, making them suitable for demanding applications like electric motors and generators.

The development of this technology addresses the pressing need for materials that are both high-performing and less dependent on rare earths.

So, what are some potential applications for this class of technology breakthrough?

Sector	Summary
Electric Vehicles (EVs):	Niron’s magnets can be used in electric motors, helping to reduce the overall cost of production by eliminating the need for expensive rare earth elements.
Wind Turbines	Permanent magnets are essential in wind turbine generators. Niron’s technology can reduce the reliance on rare earth magnets in this critical clean energy sector.
Consumer Electronics	High-performance magnets are used in devices like smartphones, laptops, and headphones. Niron’s products can help meet demand while lowering supply chain risks.
Industrial Motors and Aerospace	Niron’s rare-earth-free magnets can be applied to various industrial and aerospace technologies, offering robust performance without the resource constraints associated with rare earths.
Defense	As is the case in the sectors above, the defense sector in the United States and beyond can benefit from such a technology breakthrough in myriad ways.

Looking Forward

Niron Magnetics is positioned to play a crucial role in the global push for sustainable, renewable, and eco-friendly technologies should its plan come together. As industries shift away from reliance on rare earth materials due to their environmental impact and supply chain risks, Niron’s rare-earth-free magnets offer a promising alternative.

With the growing demand for electric vehicles, renewable energy solutions, and energy-efficient technologies, Niron’s advancements in iron nitride magnet technology are likely to gain even more importance in the years to come. By providing a scalable, cost-effective, and sustainable solution, Niron Magnetics is poised to become a significant player in the global magnetics market.

Niron Magnetics has raised over $100 million in funding, including:

• $33 million: Raised in November 2023 from investors including GM Ventures, Stellantis Ventures, Shakopee Mdewakanton Sioux Community, and the University of Minnesota
• $25 million: Raised in February 2024 from investors including Samsung Ventures, Allison Ventures, and Magna
• $17.5 million: Raised in November 2022 as a grant
• $21.3 million: Raised in July 2021
• $5 million: Raised in December 2016 as part of a Series B funding round
• $6.4 million: Raised in June 2016 as part of a Series B funding round
• $1.4 million: Raised in November 2014 as part of a Series A funding round

Niron Magnetics is a privately held company that specializes in rare earth-free permanent magnets. Their Clean Earth Magnet technology has the potential to revolutionize the design of electric motors and generators.