The 20-year loan agreement, announced by President Donald J. Trump at an industry summit in Washington, marks a strategic pivot toward securing high-performance components for defense and industrial sectors. By utilizing iron and nitrogen feedstocks instead of rare-earth materials, the company aims to mitigate risks associated with foreign export controls and price volatility.
In section Releases
Niron Magnetics Secures $150 Million Loan for Rare-Earth-Free Plant
The Department of War's Office of Strategic Capital has issued a conditional $150 million loan commitment to Niron Magnetics, aiming to anchor domestic production of iron-nitride magnets. The funding will bankroll a manufacturing facility in Sartell, Minnesota, designed to bypass the global reliance on rare-earth supply chains.
Scaling Production in Minnesota
Niron's Sartell plant, a 287,000-square-foot facility, is slated to become operational in 2027. Once fully active, it is expected to produce 1,500 tons of permanent magnets annually while generating approximately 175 full-time jobs. This site serves as the pilot for a broader manufacturing platform, with plans already in motion for a second plant by 2028 capable of scaling output to 10,000 tons. The technology, which originated at the University of Minnesota, addresses a projected global demand for permanent magnets that is expected to double by 2035. Finalizing the loan remains subject to customary closing conditions, including the completion of federal due diligence and the company securing a specified threshold of private equity.
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