Niron Magnetics, a company developing high-performance, rare earth-free permanent magnets, (earlier post), has received $25 million in new strategic funding in a round led by Samsung Ventures. Allison Ventures, the venture capital arm of Allison Transmission, was also part of this funding round, along with one of the world’s largest automotive suppliers, Magna.
This investment will strengthen Niron’s ability to expand its production facilities and scale manufacturing capacity for exclusive customer programs and initial sales of the Clean Earth Magnet.Neodymium-based permanent magnets dominate the current market but suffer from severe supply chain vulnerabilities and environmental concerns given China’s stranglehold on rare earth processing and mining. Neodymium is found in dilute quantities and has to be mined aggressively. Every ton of magnets mined makes 2,000 tons of waste.
As the demand for more sustainable and efficient alternatives to rare-earth materials increases, Niron’s iron nitride-based Clean Earth Magnet offers an environmentally sustainable, globally manufacturable, and stable supply input solution. This is mainly due to the abundant and available nature of iron and nitrogen, the main elements used in Niron’s magnets.
With improved temperature stability compared to other options currently available on the market, Niron's technology is offering a more sustainable alternative for applications in automotive, consumer electronics, and beyond, the company says.
In addition to Samsung Ventures, Allison Transmission, and Magna, current investors Shakopee Mdewakanton Sioux Community and University of Minnesota also participated in this round, providing additional funding. Niron's list of investors includes GM Ventures, Stellantis Ventures, and Volvo Cars Tech Fund.
With this new funding, Niron will expand its pilot production facilities, enhancing its ability to serve diverse clientele and support customer prototyping programs. The company will also scale up manufacturing capacity to meet growing demand and accelerate research and development efforts to drive continuous improvement in performance and efficiency. "Source: Green Car Congress"
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