Honda Backs Niron Magnets as Rare-Earth Supply Risk Moves Upstream

Interesting Engineering reported that Honda Motor has invested in Niron Magnetics, putting an automaker’s balance-sheet support behind a rare-earth-free magnet technology that still has to prove it can scale in manufacturing.

The investment, announced on September 9, will support Niron’s Iron Nitride permanent magnets and the company’s plan to expand production.

For Honda, the appeal is a materials path that could reduce exposure to rare-earth inputs used across electrified systems.

The supply-chain issue begins inside the motor.

Electric propulsion depends on strong permanent magnets, and high-performance versions have commonly relied on rare-earth metals.

Those materials can be constrained by resource availability and price movement, creating a component risk before a finished vehicle reaches the assembly line.

Niron is trying to replace that dependency with magnets built around Iron Nitride.

The company positions the material as a way to support performance, steadier costs and sustainability goals while using inputs outside the rare-earth supply chain.

Honda’s participation therefore backs an upstream manufacturing option rather than a single consumer product launch.

Jonathan Rowntree, Niron Magnetics’ chief executive, said the Honda investment reflects growing manufacturer interest in magnet designs that avoid rare-earth materials and make supply chains more resilient.

He also framed Honda’s participation as support for Niron’s plan to expand the technology into many application areas.

Those uses are not limited to cars.

Niron lists automotive systems, robotics, industrial automation and emerging mobility platforms among the targets for Iron Nitride magnets.

The same material platform could also be used in artificial intelligence infrastructure, data centres and consumer electronics, where durable magnetic components can sit behind larger hardware systems.

Honda’s own rationale returns to propulsion.

Current electric motors often depend on permanent magnets that use rare-earth metals, and the company sees Niron’s approach as one possible response to the resource limits and market volatility surrounding those materials.

Mahito Shikama, a director and executive officer at Honda Motor, described Niron’s technology as an innovative permanent-magnet approach that does not need rare-earth materials.

He tied Honda’s interest to the supply and market problems affecting rare-earth magnets and said the automaker saw potential in Niron’s work.

The factory plan gives the investment its clearest operating milestone.

Niron recently announced a 287,000-square-foot manufacturing facility in Sartell, Minnesota, for magnet production.

The plant is scheduled to start operations in 2027.

If the site reaches its planned output, it is expected to produce up to 1,500 tons of rare-earth-free Iron Nitride permanent magnets a year.

That capacity is intended for automotive, industrial and advanced-technology applications, making the Minnesota plant the practical test of whether Honda-backed rare-earth-free magnets can move from commercialization into factory-scale supply.