Niron secures $150 million loan for rare-earth-free magnet plant in Minnesota

Niron Magnetics announced Tuesday that it has secured a $150 million loan from the Shakopee Mdewakanton Sioux Community. The capital will fund equipment purchases and operational readiness for the company’s upcoming magnet manufacturing facility in Sartell, Minnesota.

The Sartell facility will serve as the company’s first full-scale production site, with commercial operations expected to commence in 2027. The plant is specifically designed to manufacture what the company describes as the world’s first rare-earth-free iron nitride permanent magnets.

Chief Executive Jonathan Rowntree stated, “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.” He also noted that “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.”

Long-term investor backing

The Shakopee Mdewakanton Sioux Community has been involved with the magnet developer since 2016. The tribal community acted as an early investor to help transition the iron nitride technology from university research into a scalable manufacturing pathway.

The investor later participated in a 2023 financing syndicate to support further development. That capital was directed toward building end-to-end manufacturing capabilities in Minneapolis and advancing customer qualification programs across various industries.

SMSC Chairman Cole Miller stated, “Niron Magnetics is building technology with the potential to strengthen domestic manufacturing while creating economic growth and opportunity here in Minnesota.” He also highlighted their environmental focus, noting, “We prioritize investments that align with our Dakota values — including being a good steward of the earth.”

Miller concluded by affirming the community's long-term support for the developer. He stated, “We recognized Niron’s potential early on to benefit the broader Minnesota community and have remained committed to investing in its success.”

In addition to the tribal loan, the company secured a conditional commitment this month from the Department of War’s Office of Strategic Capital. That separate agreement provides for a direct loan of up to $150 million with a 20-year term to further support the Sartell plant.

The Sartell plant represents a significant step in the company's broader strategy to commercialize its iron nitride technology. Successful execution of the 2027 production timeline will be closely watched by investors tracking the viability of rare-earth-free alternatives in the market.