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15h ago

Office of Strategic Capital Announces Conditional $150 Million Loan Commitment to Niron Magnetics

OSC says the financing would speed U.S. production of rare‑earth‑free Iron Nitride magnets to reduce reliance on foreign supply chains.

Interesting Engineering
Render of Niron's future rare earth-free manufacturing facility in Sartell, Minn. Image: Niron Magnetics
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Overview

  • Niron Magnetics said on Friday that the Department of War’s Office of Strategic Capital has offered a conditional direct loan commitment of up to $150 million with a 20‑year term to support construction and equipment for a Sartell, Minnesota plant.
  • The company plans a 287,000‑square‑foot Sartell facility that it says will be operational in 2027, produce up to 1,500 tons of magnets a year and create about 175 full‑time jobs if financing and other steps proceed as planned.
  • Niron and OSC note the commitment is not final and requires OSC to complete due diligence, Niron to raise a specified minimum amount of equity and satisfaction of other conditions before definitive financing is executed.
  • The magnets use an Iron Nitride process developed at the University of Minnesota over roughly 13 years and rely on domestically abundant iron and nitrogen rather than rare earth elements.
  • If completed, the project aims to strengthen supply chains for defense, electric vehicles, AI infrastructure and other industries by reducing dependence on foreign rare‑earth supply, but the timeline and impact depend on the outcome of financing and scaling risks.