Niron Magnetics Inc., a manufacturer of high-performance magnets free of rare earth metals, has been awarded $17.5 million through a federal grant.
The U.S. Department of Energy's Advanced Research Projects Agency-Energy announced Tuesday that it awarded the Minneapolis-based company alongside seven other clean-energy technology teams a total of $100 million to advance a sustainable future. The aim of the program, called SCALEUP, is to support technologies that can lower greenhouse gas emissions, lessen reliance on rare minerals and secure the country’s reputation in research and innovation, the announcement said.
“These projects will catalyze the commercialization of promising technologies so that they are available to be broadly deployed across the country in support of reaching our clean energy future,” U.S. Secretary of Energy Jennifer Granholm said in a statement. The funding is backed by unnamed private companies across seven states, the announcement said.
Founded in 2015, Niron Magnetics is developing rare-earth metals-free permanent magnets that can produce higher levels of magnetization and be manufactured at a lower cost, revolutionizing the electric vehicle and generator industries, according to its LinkedIn page. The company was spun out from the University of Minnesota's material science department through a program operated by the ARPA-E federal agency, Niron CEO Andy Blackburn said in an interview.
The funding will support the company’s work, allowing for “a less expensive, domestically manufacturable solution for the clean economy with minimum supply chain risk and a significantly reduced environmental footprint," the announcement said. And it will aid Niron in its partnerships with "dozens" of global 500 companies to create prototypes and begin testing its magnets in their products, Blackburn said. Volvo Cars is one of the company's commercial partners, Niron says.
Prototyping will begin in the second half of 2023 at its pilot production facility in Northeast Minneapolis, Blackburn said.
In 2021, Niron experienced the 12th-largest venture capital round for a Twin Cities company, bringing in $23 million with investments from Volvo Cars Tech Fund and Volta Energy Technologies, Minne Inno reported. To date, it has raised $42 million in private capital, Blackburn added.
Not yet generating product revenue, Niron has 30 full-time employees, almost all of whom are based in Minnesota, Blackburn said. It plans to begin construction on a larger facility for full-scale production in mid-2025 to be operational in 2027, he added.
