Honda invests in Niron Magnetics for rare-earth-free magnets
Honda has invested in U.S.-based Niron Magnetics, a company developing rare-earth-free permanent magnets for electric vehicles.
Honda Motor Co. Has invested in Minnesota-based Niron Magnetics, a developer of rare-earth-free permanent magnets. The investment was made through the automaker's Honda Xcelerator Ventures global open innovation program, though the specific amount was not disclosed.
Mahito Shikama, Director and Executive Officer of Honda Motor Co., stated that most electric motors today rely on rare earth metals, which face resource constraints and market volatility. "Niron Magnetics is addressing these challenges, and Honda has high hopes for its potential," Shikama said.
Reducing dependence on critical materials
Using rare-earth-free magnets can help automakers reduce dependence on critical materials and global supply chains heavily influenced by China. In 2024, China accounted for 60% of global mined production and 91% of global refined output of rare earths for magnets, according to the International Energy Agency. Niron's technology replaces rare earth metals like neodymium and dysprosium with iron nitride, a compound made from abundant iron and nitrogen.
A new U.S. Manufacturing facility
Niron Magnetics, which spun out of Department of Energy research in 2013, recently celebrated the steel-raising for a new manufacturing plant. The 287,000-square-foot facility in Sartell, Minnesota, is planned to produce what the company calls the world's only high-performance rare-earth-free permanent magnets. The plant is scheduled to be operational in 2027, with a potential annual production capacity of 1,500 tons and is expected to employ 175 workers.
Niron sources its raw materials domestically, which can help original equipment manufacturers meet long-term cost and sustainability goals. The company claims its iron nitride magnets can exceed the performance of rare-earth-based magnets by up to 50% and offer better stability across a wider temperature range.
Broad automotive applications
These magnets have potential uses across various automotive systems. They are critical for electric motors in EVs and hybrids but are also used in regenerative braking, electric power steering, and other powertrain components. For internal combustion engine vehicles, magnets are common in 12-volt electric motors and actuators, such as those for wiper motors, power door locks, and alternators.
Jonathan Rowntree, CEO of Niron Magnetics, said the Honda investment adds to growing industry momentum for alternatives to rare-earth-based magnets. "Following investment from Honda, we are encouraged by their confidence in our technology and vision for scaling rare-earth-free permanent magnets across a broad range of applications," Rowntree stated.
Growing industry investment
Niron Magnetics has attracted investment from several major automotive players in recent years. The company's funding history illustrates the industry's growing interest in securing alternative magnet supplies.
| Investor | Date | Funding Round Details |
|---|---|---|
| GM Ventures, Stellantis Ventures, Volvo Cars | November 2023 | Part of a $33 million funding round |
| Samsung Ventures, Magna, Allison Ventures | February 2024 | Led a $25 million funding round |
| Department of Defense Office of Strategic Capital | Last month | Conditional $150 million loan commitment |
In a related move, General Motors announced a multi-year supply agreement with Texas-based Noveon Magnetics for rare earth-free neodymium magnets in August 2025, with first deliveries starting in July 2025.
Last month, Niron also received a conditional $150 million loan commitment from the Department of Defense's Office of Strategic Capital to build out its production capabilities at the Minnesota site.
