General Motors and Stellantis Invest $33 Million in Niron Magnetics to Develop Rare Earth-Free Magnets for EVs

Investment in Minnesota-based startup Niron Magnetics seeks to mitigate reliance on China for rare-earth materials, reduce environmental impact, and help secure a sustainable North American EV supply chain.

General Motors (GM) and Stellantis (STLA) have invested in Niron Magnetics, a Minnesota-based startup. The company produces rare earth-free magnets for electric vehicles (EVs), seen as a sustainable alternative to those made with rare-earth materials.
This move is intended to reduce the automotive industry's dependence on China for rare-earth materials - China recently placed export restrictions on some of these materials used in EV batteries, further emphasizing the industry's need for alternatives.
The specific investment amounts by GM and Stellantis were not disclosed, but they will reportedly be collaborating on the development of EV magnet motor technology.
Niron Magnetics' Clean Earth Magnets are said to be more magnetic than those made from neodymium and praseodymium, minerals commonly used in EV batteries. Iron and nitrogen, much more abundant materials, are used instead.
The investment signals a shift in GM's approach to establishing a more secure and sustainable North American EV supply chain, which is an important consideration for vehicles to be eligible for U.S. federal tax credits.