Dive Brief:
- Honda Investment: Honda Motor Co. has invested in Minnesota-based Niron Magnetics, specializing in rare earth-free magnets for applications like electric vehicle powertrains, according to a press release on Sept. 9.
- Innovation Program: The investment is part of Honda’s global open innovation initiative, known as Honda Xcelerator Ventures. The investment amount remains undisclosed.
- Industry Statement: Mahito Shikama, a Director at Honda, emphasized the challenges associated with rare earth metals in electric propulsion motors and highlighted Niron’s innovative approach.
Dive Insight:
Using rare-earth-free permanent magnets can reduce reliance on critical materials predominantly sourced from China, which constituted 60% of global rare earth production in 2024. Niron Magnetics has developed a new technology using iron nitride as an alternative to rare earth metals.
Niron Magnetics emerged from Department of Energy research in 2013 and celebrated the groundbreaking of a manufacturing plant intended to produce these high-performance magnets. This facility is set to be operational in 2027 and aims to produce 1,500 tons annually.
Performance Advantages:
Niron’s iron nitride magnets can outperform traditional rare-earth magnets by up to 50% and are more stable across varying temperatures. This technology aligns with OEMs’ long-term sustainability goals.
Wider Applications:
These magnets are crucial in electric vehicle motors and can also be utilized in regenerative braking systems and several internal combustion engine components, supporting an array of automotive functions.
CEO Statement:
Niron Magnetics CEO Jonathan Rowntree expressed optimism about Honda’s confidence in their technology, reinforcing the industry’s shift towards alternatives for rare-earth magnets.
Other Investments:
Niron has attracted investments from various automakers. In November 2023, General Motors and Stellantis participated in a $33 million funding round, alongside Volvo Cars. The company also raised $25 million in 2024, led by Samsung Ventures.
In August 2025, GM signed a multi-year supply agreement for rare earth-free magnets, while Niron received a $150 million loan commitment from the Department of Defense to expand its production capabilities in Minnesota.
