HOUSTON, August 19th (Argus) - US non-rare earth magnet producer Niron Magnetics has received a $150 million loan from Shakopee Mdewakanton Sioux Community (SMSC) to advance its magnet factory in Sartell, Minnesota.
Niron stated on August 18th that the loan will be used for construction, equipment, and operational preparations at the site, which will commence production in 2027.
The Dakota Tribal Government SMSC made its first investment in Niron in 2016 and participated in the company's 2023 financing round.
Niron broke ground in Sartell in September 2025, with the factory covering 190,000 square feet and designed for 1,500 tons per year of nitrided permanent magnets. The factory is expected to commence operation in early 2027.
Prior to this financing, the US Department of Defense's Office of Strategic Capital also provided a conditional loan of up to $150 million. Niron also received a $10 million Minnesota Forward Fund grant in October 2025.
Niron is developing non-rare earth magnets as an alternative to neodymium iron boron magnets, targeting data center infrastructure, automobiles, industry, consumer electronics, clean energy, and defense markets. In July this year, the company reached a supply agreement with Japanese precision motor manufacturer Aspina to develop recharge-free motor systems.
Sartell is the first project in Niron's modular manufacturing platform. The company is currently site-selecting for its second US factory with an annual capacity of 100,000 tons, which is expected to break ground in 2028.
