Commodities
Home›Commodities›Mining›Niron Magnetics secures conditional $150M OSC loan for…
Niron Magnetics secures conditional $150M OSC loan for Sartell plant
The conditional financing targets a plant in Sartell, Minnesota, with up to 1,500 tons of rare-earth-free magnets annually, and a second U.S. site planned for 2028.
Niron Magnetics said it received a conditional commitment from the Department of War’s Office of Strategic Capital for a direct loan of up to $150 million with a 20-year term to fund construction and equipment for its manufacturing plant in Sartell, Minnesota.
The company is aiming to commercialize iron nitride permanent magnets that do not require rare earth materials. It said the financing is intended to speed domestic production of these rare-earth-free magnets, an alternative to rare earth-based permanent magnets that are largely produced in Asian markets.
Niron said the conditional commitment was announced by President Trump at the American Mining Industry gathering in Washington, D.C. The company expects its first commercial-scale plant, spanning 287,000 square feet, to be operational in 2027, producing up to 1,500 tons of magnets annually.
Niron added that the Sartell site would serve as the first step in a modular manufacturing platform, with final site selection under way for a subsequent U.S. plant capable of producing 10,000 tons of annual capacity that it expects to break ground in 2028.