Niron secures SMSC loan for Sartell magnet manufacturing

Niron has secured a $150 million SMSC loan for its Sartell magnet plant, with production expected in 2027 and approximately 175 full-time jobs planned.

SMSC financing supports the Sartell plant

Niron Magnetics has secured a $150 million loan from the Shakopee Mdewakanton Sioux Community to advance its magnet manufacturing plant in Sartell, Minnesota. The financing covers construction, equipment and activities needed to prepare the facility for operation. Niron announced the agreement on 18 August 2026.

The company is scaling permanent magnets made from iron nitride without rare-earth materials. Its Sartell project is intended to become Niron’s first full-scale manufacturing plant. Production is expected to begin in 2027, with approximately 175 full-time jobs planned. The opening and employment figures remain targets.

Metallic magnet samples on an inspection bench — Permanent-magnet samples

An established research and investment relationship

SMSC’s relationship with Niron followed an introduction through the University of Minnesota’s Research and Innovation Office and Technology Commercialization team more than a decade ago. The Community became an early investor in 2016 and joined a further financing syndicate in 2023.

That earlier backing supported manufacturing capabilities in Minneapolis and customer qualification work. Niron chief executive Jonathan Rowntree described the new loan as supporting construction and progress toward domestic permanent-magnet supply. SMSC chairman Cole Miller linked the investment to the Community’s economic-development and environmental priorities.

Separate commitments and expansion plans

Niron also has a separate $150 million conditional financing commitment from the Office of Strategic Capital. The SMSC loan and that conditional commitment are different arrangements. The announcement does not establish that both amounts have been disbursed, or that all conditions attached to the latter have been satisfied.

The Sartell plant is the first step in Niron’s modular manufacturing programme. Site selection is underway for a subsequent US plant with proposed annual capacity of 10,000 tons. Groundbreaking for that later facility is expected in 2028. Its capacity should not be assigned to Sartell, whose production schedule is a separate project.

Niron Magnetics

Niron identifies AI infrastructure, automotive manufacturing, industrial equipment and consumer applications among the markets for its magnets. The company describes its proprietary manufacturing platform as a route from advanced-materials research to larger-scale production. Claims about performance and supply-chain benefits are Niron’s stated product positioning.

SMSC is a federally recognized sovereign Dakota tribal government southwest of Minneapolis and St. Paul. Its participation combines the new plant loan with a longer-standing investment relationship, rather than a newly announced acquisition of Niron.