Honda Invests in Niron Magnetics, Company Building Sartell Magnet Plant

(KNSI) — The company putting up a magnet factory in Sartell has landed an investment from Honda.

Niron Magnetics makes permanent magnets out of iron nitride rather than rare earth metals. Honda invested in Honda Xcelerator Ventures, its global open innovation program. The money will go toward commercializing the technology and scaling up manufacturing. Neither company disclosed the amount.

Niron broke ground on the Sartell plant last September 26th on the former Verso paper mill site. The 190,000-square-foot facility is expected to bring 175 full-time jobs to the area and start operations in 2027. It has drawn a $52.2 million federal tax credit, a $10 million Minnesota Forward Fund grant and, last month, a $150 million loan through the Department of Defense.

Most electric motors rely on magnets built from rare earth metals, which come from a limited number of sources and are subject to price swings and supply disruptions. Niron says its magnets could be used in vehicles, robotics, industrial automation, data center equipment, defense and drone gear, and consumer electronics.

Mahito Shikama, a director and executive officer at Honda, says the rare earth supply problem is one Niron is directly addressing. “Honda has high hopes for its potential,” he says.

Niron CEO Jonathan Rowntree says the investment reflects growing interest in rare-earth-free magnets as manufacturers look for more resilient options.

The company’s technology grew out of research at the University of Minnesota. Niron runs a pilot plant in Minneapolis that opened in 2024.

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