Niron Magnetics announced Tuesday it has received a $150 million loan from the Shakopee Mdewakanton Sioux Community (SMSC) to advance construction of its magnet manufacturing plant in Sartell, Minnesota.
The company is working towards commercializing what it said will be the world’s first rare-earth-free iron nitride permanent magnets.
The funding, it said, will support equipment and operational readiness activities at Niron’s Sartell plant, advancing domestic production of rare-earth-free permanent magnets.
SMSC became one of Niron’s earliest investors in 2016 to advance iron nitride from university research towards a scalable manufacturing pathway. The Community later participated in Niron’s 2023 financing syndicate, supporting the development of end-to-end manufacturing capabilities in Minneapolis and customer qualification programs across industries.
“This financing helps accelerate construction of our Sartell manufacturing plant and brings us closer to establishing a domestic source of permanent magnets for critical industries,” Niron Magnetics CEO Jonathan Rowntree said in a news release.
“As demand for rare-earth-free permanent magnets continues to grow, investments like this support our efforts to build a resilient domestic supply chain and scale manufacturing to serve customers across critical industries.”
“Niron Magnetics is building technology with the potential to strengthen domestic manufacturing while creating economic growth and opportunity here in Minnesota,” said SMSC Chairman Cole Miller.
“We prioritize investments that align with our Dakota values — including being a good steward of the earth. We recognized Niron’s potential early on to benefit the broader Minnesota community and have remained committed to investing in its success.”
This month, Niron received a conditional commitment from the Department of War’s Office of Strategic Capital (OSC) for a direct loan of up to $150 million with a 20-year term to support construction and equipment for the Sartell plant.
The plant will serve as Niron Magnetics’ first full-scale magnet manufacturing plant and is expected to begin production in 2027.
