Niron Magnetics secures Honda investment for rare-earth-free magnets

Niron Magnetics has secured investment from Honda Motor Co. through Honda Xcelerator Ventures, the automaker's global open innovation programme. Niron announced the investment on September 9, 2026. The amount was not disclosed. The company intends to use the backing to support commercialisation of its rare-earth-free permanent magnet technology and scale its manufacturing operations.

Niron's technology uses iron nitride for permanent magnets without rare-earth materials. The company's target applications span several markets:

automotive systems and emerging mobility;
robotics and industrial automation;
artificial-intelligence and data-centre infrastructure;
consumer electronics.

Niron Magnetics

Commercial-duty propulsion partnerships

Allison Ventures, the venture capital arm of Allison Transmission, announced its investment in Niron on February 20, 2024. Its participation in Niron's funding round was intended to support commercialisation and expansion of the rare-earth-free magnet technology. Allison identified electric-vehicle propulsion motors and renewable-energy systems among the intended applications.

Allison Transmission designs and manufactures propulsion solutions for commercial and defence vehicles. Its products serve on-highway trucks, buses, motorhomes, off-highway equipment and defence vehicles. Niron expected the strategic partnership to extend its market reach through Allison's expertise and network in commercial-duty propulsion solutions. The collaboration focused on alternatives to rare-earth materials for electric motors and other applications.

Earlier automotive backing and pilot production

Niron raised $33 million in additional funding on November 8, 2023. New investors included GM Ventures and Stellantis Ventures, alongside previous local investors such as the Shakopee Mdewakanton Sioux Community and the University of Minnesota. Niron had previously received backing from Volvo Cars Tech Fund. The financing was intended to expand pilot production and manufacturing capacity for customer programmes and initial sales.

Niron planned team and facility expansions to increase customer prototyping and support small-scale product runs for initial markets. Its Clean Earth Magnet technology was intended for automotive uses including audio systems, fuel pumps, air circulation and electric-vehicle drivetrains. Additional applications identified by the company included consumer electronics, audio equipment, industrial motors, pumps, compressors and wind turbines.