MINNEAPOLIS—Niron Magnetics, a manufacturer of high-performance rare-earth-free permanent magnets, was recently awarded a $52.2 million tax credit under the Section 48C Advanced Energy Project tax credit program to advance the construction of “the world’s only manufacturing facility of these magnets” in Sartell, Minnesota, the company said in a release.
This award follows a competitive process led by the Departments of Energy and Treasury, which evaluated the technical, commercial, and environmental merits of more than 800 projects nationwide.
The Section 48C program, originally created in 2009 and expanded under the Inflation Reduction Act, is designed to accelerate U.S.-based energy manufacturing. Niron’s full-scale manufacturing facility, to be built in Sartell, was announced on October 1, 2024. It is among the 140 projects selected in the program’s second round, which allocated $6 billion in tax credits to support critical manufacturing and industrial decarbonization projects across more than 30 states, the release said.
“This funding strengthens our position as a leading manufacturer of next-generation magnet technology,” said Jonathan Rowntree, CEO at Niron Magnetics, in the release. “This support is a key enabler in our journey to scale our magnet production domestically, meet growing market demand, and lead the way in U.S.-based manufacturing of advanced materials.”
Niron will leverage the allocated tax credit in the construction of its first full-scale manufacturing facility in Sartell, marking an important step in the commercialization of its rare-earth-free magnet technology. The company’s magnets, made from the most magnetic material known to science—iron nitride—offer a sustainable solution to the increasing demand for permanent magnets while also providing domestic supply chain security, the company said in the release.
By leveraging locally available materials and cutting-edge manufacturing processes, the 190,000-square-foot facility will reduce reliance on imported materials and secure domestic supply chains. The facility is also expected to foster economic growth in energy communities, creating approximately 175 jobs.
“Niron Magnetics’ decision to build their cutting-edge permanent magnet facility in Sartell is fueling innovation and creating new job opportunities in Minnesota,” said Sartell Mayor Ryan Fitzthum, in a statement. “It’s also breathing new life into the former Verso Papermill site, which closed in 2012. Our community is fully energized and united in supporting the arrival of this game-changing technology in Sartell!”
Permanent magnets are essential components across various industries, including energy and automotive. As the demand for more sustainable alternatives to rare earth materials increases, Niron’s iron nitride-based magnets offer a solution that can be manufactured globally from abundant, stable supply inputs. This achievement would not be possible without the company’s strategic partnerships with industry leaders such as Stellantis, through its corporate venture fund Stellantis Venture, which are driving the development and application of their magnet technology to revolutionize critical sectors, the release said.
“We’re proud to partner with Niron Magnetics to advance sustainable solutions for electric motors, bringing innovative benefits to our customers,” commented Anne Laliron, head of tech research at Stellantis, in the release “Their groundbreaking technology represents a pivotal step in reducing reliance on rare earth minerals and perfectly aligns with our commitment to cleaner, affordable mobility for all.”