Major electric vehicle players, including General Motors and Stellantis, invested in startup Niron Magnetics’ rare earth-free magnets development. The move is apparently part of their strategies to reduce their reliance on China, Reuters reports.
Investment details
GM and Stellantis reportedly contributed to the recent $33 million funding round for Niron Magnetics. The two legacy automakers also intend to collaborate to aid the development of these innovative EV components without rare earth applications.
“Permanent magnets are the unsung heroes and essential components of countless parts of your vehicle.
Where they have the greatest impact for GM is in the drivetrain to their future EVs. Today, roughly 90% of the rare-earth magnet supply is dependent upon China.”
Niron CEO Jonathan Rowntree told the media on a call
Unfortunately, Niron Magnetics did not disclose the financial terms of the funding round. However, a source familiar with the investment claims that GM allocated $7 million.
“We believe Niron’s unique technology can play a key role in reducing rare earth minerals from EV motors and help us further scale our North American-based supply chain for EVs. Our path to an all-electric future will be enabled not only by our own research and development efforts but also by investing in next-generation technology from startups and established companies outside our four walls.”
GM Ventures President Anirvan Coomer said in a press release
Meanwhile, Stellantis reportedly invested $5 million.
“Making powerful magnets from plentiful commodity materials decouples new production from rare earth mine development and lowers overall environmental impact.”
Stellantis Ventures managing partner Adam Bazih
Significance
According to the report, GM and Stellantis’ decision to invest in the clean earth magnets startup occurred after the Chinese Government announced plans to mandate export permits for some graphite products to secure national safety. Notably, it is also essential for electric vehicle production.
Therefore, the major investment signifies the legacy automakers’ preventive measures for component shortage once China further intensifies its stringent regulations for exports.
“There’s a lot of manufacturing steps and a lack of price transparency in this industry with rare earths, given the concentration of supplies in China.”
Niron Senior Director Tom Grainger
About Niron Magnetics
Niron Magnetics is a Wisconsin startup that develops electric motor magnets without rare earth elements, which mostly come from China (about 90%).
According to Electrek, its intellectual property now has 30 granted patents and 20 pending approval.
The company’s propriety technology, “Clean Earth Magnet,” employs Iron Nitride to produce quality magnets without rare earth elements. In October, TIME Magazine recognized the groundbreaking tech as one of the Best Inventions of 2023.
Niron’s rare-earth-free breakthrough can undoubtedly reshape the future of electric vehicle motors and drivetrains, among others. It can also enable the EV industry to break away from its current high reliance on Chinese imports.
