Jonathan Rowntree, CEO, Niron Magnetics
In an interview with Invest:, Jonathan Rowntree, CEO of Niron Magnetics, discussed the opening of the world’s first rare-earth-free powerful permanent magnet facility. He added that Niron Magnetics is working to address environmental challenges while driving innovation in sectors like industrial motors, EVs and wind turbines.
Reflecting on the last 12 months, what have been the main highlights and milestones for Niron Magnetics?
The biggest highlight for us has been the work we accomplished in building out our commercial pilot plant capability in Minneapolis. We celebrated its opening in October 2024, while also marking our 11th anniversary after we originated as a spin-out from the University of Minnesota. Initially, our focus was on perfecting the science, and in recent years, we have concentrated on scaling that capability.
In October, we inaugurated the world’s first commercial pilot plant facility for powerful rare-earth-free permanent magnets, as well as signed a Purchase Agreement to build the first full-scale manufacturing facility in Sartell, Minnesota. This milestone was supported by a $17.5 million grant from the Department of Energy, which enabled us to enhance our capabilities. We grew from 40 employees to more than 90, and we now operate out of a 70,000-square-foot facility in Minneapolis.
We scaled our manufacturing process from producing magnets at the gram scale in the lab to manufacturing them at the ton scale. This allows us to expand sampling programs across a variety of applications, including audio systems, vehicle motors, and consumer, industrial, and energy products. Looking ahead, we aim to break ground in 2025 on a full-scale manufacturing plant, which we expect to bring online in late 2026 or early 2027.
What are the implications of opening the world’s first rare-earth-free powerful permanent magnet manufacturing facility for magnet technology and the industry as a whole?
This facility addresses three major challenges with traditional rare-earth magnets: environmental impact, supply-demand imbalances, and supply concentration.
First, rare-earth mining is extremely harmful to the environment. For every ton of rare-earth magnets produced, approximately 2,000 tons of waste is generated. Secondly, there is a looming supply-demand imbalance. As the energy transition accelerates, the world will require three times the current production of permanent magnets, but there are only enough rare-earth resources to double production. Finally, 90% of the world’s rare-earth magnets are manufactured in China, creating significant supply concentration, which could then lead to supply imbalances for the U.S.
Niron’s solution is our iron-nitride-based magnets, which utilize abundant and recyclable materials, namely iron and nitrogen. Our facility integrates the entire production process, from raw materials to finished magnets, under one roof. This eliminates the environmental and logistical inefficiencies of the traditional supply chain. As such, our technology is not only more sustainable but also addresses the supply-demand gap, and environmental and supply chain resiliency concerns.
To what do you attribute Niron Magnetics’ recognition by Time Magazine as one of America’s top green technology companies of 2024?
Simply put, it reflects the transformative impact our technology is poised to have. The permanent magnet market, valued at over $15 billion, has seen little innovation until now. Niron Magnetics is leading the charge in developing new, sustainable solutions to meet the growing demand. This recognition underscores both the environmental and economic potential of our technology.
What role do magnets play in powering the global economy, and where do you see growth opportunities for their use?
Magnets have several key applications. Currently, around 20% of the magnet market is dedicated to audio applications, such as speakers, while 40% is used in industrial motors for pumps, HVAC systems, robotics, and more. Magnets also play a role in automotive components, such as power windows and pumps.
The most significant growth areas include EV drivetrain motors, wind turbines, and defense systems. For instance, offshore wind turbines require up to 6,000 pounds of magnets each. Magnets are also essential in various defense systems, contributing to national security. We are actively engaged with all these markets to expand the use of our sustainable magnet technology.
How is Niron Magnetics ensuring sustainability and cost efficiency while producing high-performance magnets?
Sustainability is embedded in both our technology and manufacturing process. Our iron nitride magnets are made using the most recycled material on the planet, that is iron, and nitrogen, which is abundant in the air. Our manufacturing process minimizes waste and recycles byproducts as well. A life cycle analysis conducted with Purdue University showed that our magnets are 70% to 90% cleaner across several environmental metrics compared to traditional rare-earth magnets.
In terms of cost efficiency, our magnets are competitive with rare-earth magnets. Additionally, they enable our customers to design more efficient motors, improving the performance of their devices. For example, we are working with strategic partners like Samsung Electronics, GM, and Stellantis to integrate our technology into their systems.
In addition to environmental sustainability and technological innovation, what else sets Niron Magnetics apart?
Our commitment to being “Made in the USA” is worth emphasizing. Niron Magnetics was founded in Minnesota, and the region’s highly technical workforce has been instrumental in our progress. With over 20 Ph.D.s and engineers, we have the expertise required to scale our technology effectively.
As we establish our manufacturing plant, we are dedicated to keeping operations in Minnesota to leverage the region’s technical capabilities. This facility will rely on automation and skilled technicians to produce our advanced materials. Minnesota offers an excellent fit for our manufacturing plans, and we are excited to deepen our roots there, contributing to the community while scaling our operations.
What are the primary challenges for Niron Magnetics, and how is the company addressing these?
The challenges we face largely revolve around scaling our technology. These are primarily engineering challenges, and we are confident in our ability to address them. Developing a new material requires us to use industrially proven processes and equipment already utilized at scale for similar materials, even if not for ion nitride itself. This approach gives us confidence in scaling successfully. Over the next 12 months, we aim to focus on designing, partnering, and fundraising to realize our first manufacturing plant. We are pursuing grants to help establish this facility and plan to break ground in 2025, targeting operations to begin in late 2026 or early 2027.
Beyond federal grants, are there any specific industries or private companies that Niron Magnetics is seeking to partner with to drive growth?
We have strong representation from the automotive sector among our investors including GM, Volvo, Stellantis, and Magna, while also having Samsung Electronics show keen interest in our technology, especially for audio applications. Beyond these partnerships, we aim to broaden our strategic investment base to include sectors like industrial motors and defense systems.
We are also engaging with growth-stage financial investors who are eager to support Niron Magnetics as we scale. Having significantly de-risked our technology, these investors are enthusiastic about our potential to make a global impact. 2025 will be pivotal as we finalize fundraising for our first plant.
Are there any trends in sectors like EVs, audio electronics, motors, or wind turbines that could influence Niron Magnetics’ growth and scaling strategies?
The permanent magnet market is increasingly focused on supply chain security, reliability, and environmental sustainability. Customers are actively seeking more sustainable solutions, but their primary concerns remain access to reliable supply and stable pricing. This is where our technology excels; addressing these supply chain challenges while offering a robust and environmentally friendly alternative.
Additionally, there is a growing interest in manufacturing these materials within the United States, reflecting customers’ preference for localized and secure supply chains. Beyond reliability, our customers appreciate the enhanced properties of our material technology, which enables improved device designs and better-performing products.
Looking to the future, what are Niron Magnetics’ primary goals over the next 12 months beyond fundraising and constructing the new facility?
Our immediate goals involve advancing collaboration agreements with numerous customers. These agreements are crucial for qualifying our magnet technology in end-device applications across various industries. Over the next 12 months, these collaborations should lead to supply agreements, helping us allocate production capacity for our first plant.
Additionally, we are designing magnets for diverse applications, including audio devices, electric motors, and defense systems. Developing and showcasing demonstrator prototypes to highlight the efficiency of our technology is a significant focus. Our team is committed to demonstrating how our magnets enhance the performance and efficiency of end devices.
