Minneapolis, USA-based company pioneering the world’s first high-performance, rare earth-free permanent magnets, Niron Magnetics, raised USD 33 million in additional funding. The round took place on November 7, 2023. Leading automotive manufacturers GM Ventures and Stellantis Ventures led the financing for the company. Previous local investors such as Shakopee Mdewakanton Sioux Community (SMSC) and the University of Minnesota (UMN), amongst other investors, provided the investment.
Purpose of financing for Niron Magnetics
The recent financing allows Niron to expand its current pilot production facilities. It also has plans to scale manufacturing capacity for exclusive customer programs and initial sales of its Clean Earth Magnet®.
In addition, the company plans to fuel the commercialization of Niron’s Iron Nitride-based Clean Earth Magnets, which are environmentally sustainable, globally manufacturable, and made from stable supply inputs. Furthermore, Niron’s alternative to rare-earth magnets promises improved temperature stability as compared to other options currently available on the market, which is critical for automotive use.
GM Ventures and Stellantis Ventures, and previous funding from Volvo Cars Tech Fund and their commitment, demonstrates the potential of its Clean Earth Magnet technology to meet the automotive industry’s need to diversify and secure its supply chain with a viable alternative to rare earth magnets.
What the investors have to add
Anirvan Coomer, president of GM Ventures, said, “Nearly 40 years ago, GM’s R&D team discovered and commercialized the world’s first high-powered, rare-earth permanent magnet material. GM Ventures’ investment in Niron’s Magnetics brings our rich history in specialized magnet innovation full circle. Niron’s Clean Earth Magnet could help GM make more affordable EVs for its customers out of more abundant materials.”
Adam Bazih, Managing Partner at Stellantis Ventures, further added, “We were drawn to invest in Niron by the impressive sustainability benefits that its Clean Earth Magnet technology offers for vehicles and the inherent scalability of their solution. Making powerful magnets from plentiful commodity materials decouples new production from rare earth mine development and lowers overall environmental impact, which directly aligns with Stellantis’ commitment to reach carbon net zero by 2038.”
What the company’s official has to add
Jonathan Rowntree, CEO at Niron Magnetics, said, “We are thrilled that local organizations like SMSC and UMN continue to support Niron’s growth and that GM and Stellantis both see the potential for Niron’s technology to help drive the automotive industry’s transition to EVs. We look forward to collaborating closely with all of our investors and partners to work towards enabling a rare earth-free future in magnetics.”
About Niron Magnetics
In 2014, Jian-Ping Wang & Frank Thibodeau launched Niron Magnetics. The company is scaling the world’s first advanced manufacturing process for the mass production of permanent magnets. Niron’s proprietary Clean Earth Magnet® technology based on Iron Nitride enables magnets that possess inherently high magnetization, and are free of rare earth and other critical materials. It also enables a revolution in the design of new electric motors and generators.
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