Niron Magnetics secures $150M loan for Minnesota magnet plant

Niron Magnetics has received a conditional commitment for a loan of up to $150 million from the Office of Strategic Capital to fund its commercial-scale manufacturing plant in Sartell, Minnesota. The 20-year financing will support the construction and equipment for the 287,000-square-foot facility, which is scheduled to begin operations in 2027.

The company specializes in producing Iron Nitride permanent magnets, a technology developed at the University of Minnesota that does not require rare-earth elements. This approach aims to mitigate supply chain vulnerabilities, as most high-performance magnets currently rely on rare-earth materials processed in Asian markets.

The planned facility is expected to produce up to 1,500 tons of rare-earth-free magnets annually. These components are essential for various sectors, including defense systems, data centers, robotics, aerospace, electric motors, and artificial intelligence infrastructure.