Niron Magnetics Lands Up to $150 Million Federal Loan Commitment for Sartell Plant

(KNSI) — Niron Magnetics has received a conditional commitment from the federal government for a direct loan of up to $150 million to help build its permanent magnet manufacturing plant in Sartell.

The 20-year loan commitment comes from the Department of War’s Office of Strategic Capital. The money would go toward construction and equipment at the plant, which is scheduled to be operational in 2027 and is expected to create up to 175 full-time jobs.

President Donald Trump announced the commitment at a mining industry gathering in Washington, D.C.

The Minneapolis-based company makes magnets that do not use rare earth materials. Its Iron Nitride magnets are made from iron and nitrogen instead. Most rare earth permanent magnets are produced overseas and used in defense systems, data centers, electronics, robotics, aerospace applications and electric motors.

The technology was developed at the University of Minnesota and scaled over the past 13 years.

The 287,000-square-foot Sartell plant would produce up to 1,500 tons of magnets a year. Niron says it is the first plant in a larger manufacturing platform, and the company is selecting a site for a second U.S. plant capable of producing 10,000 tons per year, which is expected to break ground in 2028.

Congressman Tom Emmer says the commitment will help Niron create high-quality jobs in Sartell and support Minnesota’s economy and the military.

The commitment is still subject to conditions before final financing documents are signed, including the government’s completion of due diligence and Niron raising a minimum amount of equity.

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