Niron Magnetics Secures $150 Million Tribal Loan to Scale Rare-Earth-Free Iron Nitride Magnets

Highlights

• Niron Magnetics received a $150 million loan from the Shakopee Mdewakanton Sioux Community to fund its Sartell, Minnesota Iron Nitride magnet plant.
• The Sartell facility targets 1,500 tonnes annually by 2027, with a second U.S. plant planned at 10,000 tonnes per year and up to $1.8 billion in investment.
• Iron Nitride magnets use iron and nitrogen instead of rare earths, offering a potential alternative supply chain path for motors, robotics, and defense applications.
• Federal analysis notes Iron Nitride has higher remanence but lower coercivity than sintered NdFeB, meaning substitution depends on specific application and engineering requirements.
• Commercial-scale manufacturing, yields, costs, and performance qualification across demanding applications still need to be demonstrated before declaring success.

Niron Magnetics (opens in a new tab) has secured a $150 million loan from the Shakopee Mdewakanton Sioux Community (SMSC (opens in a new tab)) to build its Sartell, Minnesota, Iron Nitride magnet plant. Combined with a separate $150 million conditional federal loan commitment, Niron is assembling serious capital behind something strategically unusual: a permanent magnet made from iron and nitrogen rather than rare earths. Sartell targets 1,500 tonnes annually beginning in 2027, while Niron is planning a second U.S. plant capable of 10,000 tonnes per year.

REEx Insight: Don't Replace China—Change the Chemistry

America's magnet strategy usually means recreating China's mine-to-NdFeB supply chain. Niron offers another path: remove rare earths from selected applications altogether. That makes Iron Nitride potentially important in Great Powers Era 2.0. Niron's proposed second plant alone targets 10,000 tonnes annually and up to $1.8 billion of investment. But investors should resist the victory lap. Commercial-scale manufacturing, yields, costs, qualification, and performance across demanding applications still must be demonstrated.

See Rare Earth Exchanges® podcast interview (opens in a new tab) with Tom Grainger, VP of Commercial and Corporate Development, Niron Magnetics.

$150 Million Says Scale Is Getting Real

SMSC is not a newcomer. It first backed Niron in 2016 and participated in its 2023 financing alongside GM Ventures and Stellantis Ventures. The new debt financing supports construction, equipment, and operational readiness at Sartell. Minnesota records put that project's cost near $170 million, with approximately 175 jobs expected. The underlying technology is credible enough for serious attention—but not magical. Federal analysis has previously found Iron Nitride's remanence higher but coercivity lower than most sintered NdFeB grades, suggesting substitution may depend heavily on application and engineering.

That nuance is the story. Niron need not replace NdFeB everywhere to matter. Capturing even selected motors, pumps, data centers, robotics, or defense applications could reduce pressure on America's most vulnerable magnet supply chain.

REEx Connect

REEx Disclosure: The financing announcement originates from Niron Magnetics. Company performance, scale, and commercialization claims should be independently verified.