Niron Magnetics, the magnet company that grew out of University of Minnesota research, is close to choosing a site for a $1.8 billion manufacturing plant.
Niron started the search publicly in March. On March 16, 2026, the company said it had begun formal site selection for a second U.S. plant. It described the factory as 1,600,000 square feet, built with up to $1.8 billion in capital investment, employing more than 700 full-time workers and producing 10,000 tons of iron-nitride magnets a year. The company estimated that output at 1-2% of the global permanent magnet market. Construction is set to start in early 2028. The real estate advisory firm Savills is running the search, and the company said the criteria are transportation access, energy capacity, workforce availability and fit with local environmental and economic development priorities.
CEO Jonathan Rowntree said in the March announcement that expanding domestic production "with the right partner who shares this vision will be critical to strengthening supply chain resilience." Supply chains are the whole pitch. Niron makes permanent magnets from iron and nitrogen, not the rare-earth minerals in most high-performance magnets, which are used in everything from motors to electronics. The company was founded in 2013 through a partnership between the U.S. Department of Energy and the U of M, and the core technology was developed on campus.
The new plant would be Niron's second. The first is under construction in Sartell, just outside St. Cloud. It broke ground on September 29, 2025, covers 190,000 square feet and is expected to start operating in early 2027. At full capacity it will make 1,500 tons of magnets a year and employ more than 175 people in manufacturing, engineering and operations. That means the next plant would have more than 6 times the output of the one now going up in Sartell.
Funding for the Sartell plant came together this year. In August, the Shakopee Mdewakanton Sioux Community made a $150 million loan to the project, on top of a $150 million federal commitment. "We prioritize investments that align with our Dakota values — including being a good steward of the earth," SMSC Chair Cole Miller said at the time.
Niron hasn't announced where the larger plant will go. Whichever community wins it gets more than 700 jobs and a factory based on technology developed at the U. When Niron names the site, we'll report it.
