Stellantis, GM Back Startup Challenging China’s Rare-Earth Dominance in Magnet Production

Stellantis NV and General Motors Co. are among the global manufacturers supporting Niron Magnetics, a U.S. startup developing rare-earth-free permanent magnets. The Minnesota-based company's iron nitride technology promises magnets that are 18% more powerful than conventional versions while reducing reliance on Chinese supply chains.

Niron has broken ground on a 1,500-tonne annual production facility in Sartell, Minnesota, scheduled for completion in early 2027. At full capacity, the plant could meet approximately 3% of U.S. magnet demand. The MOVE comes as global magnet supply is projected to fall 55,000 tonnes short of demand by 2030.

The initiative represents a strategic shift in advanced manufacturing as Western companies seek alternatives to China's control over 90% of rare-earth element processing. Niron's technology emerged from decades of research by University of Minnesota professor Jian-Ping Wang, offering potential cost savings and supply chain security for electric vehicles and renewable energy systems.