Niron Magnetics Secures $150 Million Loan to Build Rare-Earth-Free Magnet Plant in Sartell, Minnesota

Niron Magnetics announced on August 18 a $150 million loan from the Shakopee Mdewakanton Sioux Community (SMSC) to advance construction of its magnet manufacturing plant in Sartell, Minnesota.

Construction and equipment

The funding will support construction, equipment and operational readiness at the Sartell plant, advancing domestic production of rare-earth-free Iron Nitride permanent magnets. It adds to a $150 million conditional commitment from the U.S. Department of War Office of Strategic Capital.

Production in 2027

The Sartell plant will be Niron’s first full-scale magnet manufacturing plant and is expected to begin production in 2027, creating approximately 175 full-time jobs. It will serve AI infrastructure, automotive, industrial and consumer applications.

Next plant

Final site selection is underway for a subsequent U.S. plant capable of producing 10,000 tons a year, expected to break ground in 2028.

Jonathan Rowntree, CEO of Niron Magnetics said:

“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.”

SMSC Chairman Cole Miller said:

“Niron Magnetics is building technology with the potential to strengthen domestic manufacturing while creating economic growth and opportunity here in Minnesota.”