Automakers Back U.S. Rare‑Earth‑Free Magnet Plant

Stellantis, General Motors and other manufacturers are backing a U.S. startup building a large-scale magnet factory that avoids rare-earth elements.

Niron Magnetics plans a 1,500-tonne-per-year plant in Sartell, Minnesota, aiming to begin operations in early 2027 and to supply roughly 3% of U.S. magnet demand. The company’s technology uses iron nitride—an abundant iron‑and‑nitrogen compound developed from decades of research by co-founder Jian‑Ping Wang—and is billed as cheaper and about 18% stronger than conventional neodymium-based magnets.

The shift is designed to blunt geopolitical risk: China controls most rare-earth mining, processing and magnet production, a concentration that has worried U.S. industry and policymakers. Global magnet demand is projected to outstrip supply by about 55,000 tonnes by 2030, increasing urgency for alternatives.

Niron has attracted roughly $150 million in private funding and support from Stellantis, GM, Volvo and Samsung Ventures, plus a $52.2 million tax credit and earlier Department of Energy grants. Company executives stress the benefit of avoiding new mines, but independent experts urge caution: data validating long-term performance in electric vehicles, renewables and defense systems remain limited.

If validated at scale, iron‑nitride magnets could lower costs and supply‑chain exposure, but demanding field tests lie ahead.