MINNEAPOLIS–(BUSINESS WIRE)–Niron Magnetics, the company pioneering the world’s first high-performance, rare earth-free permanent magnets, today announced it has raised $33 million in additional funding, with new investments from leading automotive manufacturers, GM Ventures and Stellantis Ventures, and previous local investors, Shakopee Mdewakanton Sioux Community (SMSC) and the University of Minnesota (UMN), amongst other investors. This new financing will allow Niron to expand its current pilot production facilities and scale manufacturing capacity for exclusive customer programs and initial sales of its Clean Earth Magnet®.

“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.”

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Permanent magnets are essential components in all automobiles, fundamental to audio systems, fuel pumps, air circulation, electric vehicle (EV) drivetrains, and much more. As more cars are bought around the globe and demand surges for EVs, so does the demand for more stable and sustainable alternatives to rare-earth materials. This new round of funding will advance the commercialization of Niron’s Iron Nitride-based Clean Earth Magnets, which are environmentally sustainable, globally manufacturable, and made from stable supply inputs. Further, Niron’s alternative to rare-earth magnets promises improved temperature stability compared to other options currently available on the market, which is critical for automotive use.

With the new investments from GM Ventures and Stellantis Ventures, and previous funding from Volvo Cars Tech Fund, Niron is now backed by three leading automotive manufacturers. This 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.

“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,” said Anirvan Coomer, president of GM Ventures. “Niron’s Clean Earth Magnet could help GM make more affordable EVs for its customers out of more abundant materials.”

By increasing its pilot production capacities through team and facility expansions, Niron will be able to increase customer prototyping programs, and support small-scale product runs for key entry markets. In addition to automobiles, Niron’s Clean Earth Magnet technology can be used in consumer electronics and audio technology, industrial motors, pumps, compressors, wind turbines, and more.