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A future manufacturing plant in central Minnesota is expected to produce magnets used in cell phones, electric vehicles, wind turbines and defense weapons — without requiring rare earth elements that are in short supply in the U.S.

Niron Magnetics is building the 190,000-square-foot plant in Sartell, just north of St. Cloud. The Minneapolis-based company says it’s the first manufacturing plant in the world to produce high-powered magnets without the use of rare-earth materials. 

“We’re excited now to really commercialize and scale that in Sartell,” said Niron CEO Jonathan Rowntree in an interview on Tuesday. 

Niron expects the plant to begin operating in early 2027. When it’s at full capacity, it’s expected to produce up to 1,500 tons of magnets a year and employ 175 people.

Niron officials say the plant will help reduce U.S. reliance on imported materials and secure domestic supply chains. Sartell city leaders hope it will bring new economic growth to the site of a former paper mill destroyed by fire more than a decade ago.

The project has attracted the support of elected officials from both major political parties. Speakers at a groundbreaking event on Friday included Minnesota Gov. Tim Walz, Republican U.S. Rep Tom Emmer and Democratic U.S. Rep. Betty McCollum.

Walz said the Niron plant is an example of Minnesota leading in technology innovation that addresses a national security concern.

“We’re not dependent on Beijing,” he said. “We’re dependent on Sartell now. We’re dependent on Minnesota, and that makes all the difference.”

Niron touts its products as more sustainable for the environment and the U.S. economy. Most rare earth elements used to make magnets are mined in China, through a process that pollutes the environment and threatens human health. 

In April, China suspended exports of certain rare earth minerals and magnets in retaliation for new U.S. tariffs. The move threatened to disrupt defense, energy and automotive manufacturing.

“Magnets really underpin many of our modern devices that we rely on every day for our modern-day lives,” Rowntree said. A cell phone might contain 18 different magnets, while a vehicle has at least 75, he said. 

The technology Niron uses was developed more than a decade ago by Jian-Ping Wang, a professor at the University of Minnesota who helped found Niron and remains one of its advisers.

Niron’s magnets are produced with iron and nitrogen, materials that are abundant in Minnesota. The magnets are permanent, meaning they do not lose their charge over time.

The iron comes from iron salt, a byproduct of manufacturing steel from iron ore. The source of nitrogen is ammonia, a key ingredient in fertilizer manufacturing common in the Midwest.

The first part of Niron’s manufacturing process creates iron nitride, a magnetic powder. The powder is then formed into different shapes and sizes of magnets, Rowntree said.

“It’s very powerful from its magnetic strength, but it’s also got these low-cost raw material inputs — iron and nitrogen,” he said. “That’s what makes it unique.”

In 2022, Niron received a $17.5 million grant from the U.S. Department of Energy to scale up the magnet technology. Last year, it opened a commercial pilot plant in Minneapolis. 

About a year ago, the company announced it planned to build its first full-scale manufacturing plant in Sartell.

The rise of artificial intelligence, data centers and industrial robots is accelerating the need for more magnets, Rowntree said. And they’re also important for clean energy technology, including wind turbines and electric vehicles.

Rowntree said companies such as GM, Stellantis and Samsung have invested in Niron, hoping it can provide an alternative to rare earth magnets.

“We have a lot of demand that we’re building this factory for as fast as possible,” Rowntree said. 

In January, the U.S. Department of Energy awarded Niron a $52 million federal tax credit to build the plant. The city of Sartell also provided financial incentives for the project, including tax-increment financing and waiving some city fees. 

Part of the 80-acre plant site once belonged to the Verso Paper mill. It was destroyed by an explosion and fire that killed one person and injured five others.

“It was our largest employer, a source of identity and a pride for generations – quite literally, the reason Sartell started,” said Sartell Mayor Ryan Fitzthum at Friday’s event. “Its closure in 2012 left both an economic and emotional gap within our city.”

Niron’s new facility is “bringing new life to this land,” Fitzthum said.

Niron considered 75 locations for the plant before deciding on Sartell, Rowntree said. The city’s adequate space, skilled workforce and available power from the Monticello nuclear plant were attractive, he said, along with St. Cloud State University and St. Cloud Technical and Community College as training grounds for future workers.

Rowntree said Niron already is sponsoring Sartell High School’s robotics team.

“We’re already building relationships there and making sure we have a good pipeline of talent, to be able to fill the plant with the best team to grow our business,” he said.

Niron already is looking for a location for its next manufacturing facility, which will produce up to 10,000 tons of magnets a year. U.S. Rep. Betty McCollum said elected officials should work with Niron to find a location in Minnesota.

“There’s going to be a $1.2 billion facility, and it’s going to be built somewhere in the United States,” she said. “Governor, Rep. Emmer — I think we can do it right here.”

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Kirsti Marohn

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It’s the first manufacturing plant in the world to produce high-powered magnets without the use of rare earth materials. Niron officials say the plant will help reduce U.S. reliance on materials imported from China.

Niron breaks ground on Sartell plant to produce magnets without rare earth elements

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