MINNEAPOLIS, MN – January 21, 2025 – Niron Magnetics, a leading manufacturer of high-performance rare-earth-free permanent magnets, has been 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. This award follows a competitive process led by the Departments of Energy and Treasury, which evaluated the technical, commercial, and environmental merits of over 800 projects nationwide.
The Section 48C program, originally created in 2009 and expanded under the Inflation Reduction Act, is designed to accelerate US-based energy manufacturing. Niron’s full-scale manufacturing facility to be built in Sartell, announced on October 1, 2024, 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.
“This funding strengthens our position as a leading manufacturer of next-generation magnet technology,” said Jonathan Rowntree, CEO at Niron Magnetics. “This support is a key enabler in our journey to scale our magnet production domestically, meet growing market demand, and lead the way in US-based manufacturing of advanced materials.”
Niron will leverage the allocated tax credit in the construction of its first full-scale manufacturing facility in Sartell, Minnesota, 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.
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. This facility also will foster economic growth in energy communities, creating 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. “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.
“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. “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.”
The award shows the importance of Niron’s unique approach to efficient and scalable technology, aligning with federal objectives to bolster sustainable manufacturing practices in energy community census tracts.
More details about the tax credit program can be found on the Department of Energy’s 48C Program Page: https://home.treasury.gov/news/press-releases/jy2779.
About Niron Magnetics
Niron Magnetics is the world’s only producer of high-performance, rare-earth-free permanent magnets. The company’s iron nitride magnet technology delivers advanced permanent magnets that power essential devices across industrial, automotive, consumer electronics, and defense applications. Through its state-of-the-art manufacturing facility in Minnesota, Niron serves leading manufacturers who require reliable, domestically produced permanent magnets for their products. For more information on Niron Magnetics and its technology, please visit https://www.nironmagnetics.com/
