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Niron secures $150 million loan to build rare-earth-free magnet plant in Minnesota
The Sartell facility is expected to begin production in 2027, aimed at supporting defense manufacturers facing a January 1, 2027 deadline to cut reliance on Chinese-origin magnets.
Niron Magnetics said it received a $150 million loan from the Shakopee Mdewakanton Sioux Community to advance construction of its magnet manufacturing plant in Sartell, Minnesota.
The company is working to commercialize what it described as the world's first rare-earth-free iron nitride permanent magnets, with the funding intended to support equipment and operational readiness at the Sartell site.
Niron said the loan builds on the community's earlier investment in 2016 and its later participation in Niron's 2023 financing syndicate for end-to-end manufacturing development and customer qualification programs across industries.
Niron also noted it received a conditional commitment earlier this month from the Department of War’s Office of Strategic Capital for a direct loan of up to $150 million, and it expects the Sartell plant to begin production in 2027, which it says is relevant to defense manufacturers under a January 1, 2027 deadline to reduce reliance on Chinese-origin magnets.