Niron Magnetics is a small US-based startup company that just received $33 million in funding from one of the biggest automakers in the country, General Motors. Previously, Volvo Group and Stellantis had chipped in as well. The company aims to deliver “clean earth permanent magnets”, which are essential for the production of electric motors in EVs.
They are called “permanent magnets” because, within the motor unit, they constantly generate force, which is used for turning electricity into mechanical energy. And Niron Magnetic is proud to say that its version of magnets is “the first and only permanent magnet with automotive-grade power that is entirely free from critical materials”. So, instead of using rare and expensive minerals and materials sourced from just a handful of countries around the world, delivered over an unstable supply chain, the startup offers an iron nitride-based solution. This is a cheap, easy-to-find material that has a far lower environmental impact.
In addition to being environmentally friendly and cheaper to produce, Niron Magnetic’s magnets offer improved temperature stability, which boosts the performance and efficiency of electric motors.
Right now, the company has only 60 employees, but with the recent round of funding, Niron Magnetics hopes to double the employee count by the same time next year. The development of the new magnets is ongoing at both companies, GM and Niron Magnetics.
This could also have an impact on the US tax credit, which asks manufacturers to produce most of the EV components on home soil. So, making permanent magnets in the US will open up the doors for more EVs, qualifying for the EV tax credit.