Minneapolis magnet startup weighs $1.8B plant site
Niron Magnetics, a Minneapolis‑based maker of rare‑earth‑free magnets, is scouting locations in multiple states for a planned 1.6‑million‑square‑foot factory that would cost about $1.8 billion and employ roughly 700 people, and the question on the table is whether Minnesota can realistically land it. The Business Journal reports that very few Minnesota industrial sites are ready at that scale, putting the state at a disadvantage against regions that have spent years pre‑permitting and assembling megasites for battery and chip plants. Niron has already drawn significant federal support — including a $50 million award — and opened a Washington, D.C., office, signaling it is positioning itself as a national‑level supplier into EVs and clean‑energy manufacturing. If the company follows the common pattern and takes the big factory, and its payroll, to another state, the Twin Cities will be left with the headquarters and R&D but miss out on hundreds of middle‑class manufacturing jobs and the related supplier and tax‑base ripple effects. The article sketches out how much state and local leaders would have to step up on land, infrastructure and incentives if they actually want this homegrown manufacturer to build at scale in its own backyard instead of somewhere cheaper and more shovel‑ready.
📌 Key Facts
- Niron Magnetics is evaluating multiple states for a 1.6‑million‑square‑foot factory estimated at $1.8 billion in cost.
- The project would create about 700 jobs if built as planned.
- The article notes Minnesota has very few industrial sites developed at that size, raising doubts about the state’s competitiveness for the plant.
📊 Relevant Data
China controls over 90% of the global supply of rare-earth magnets, creating vulnerabilities in the US supply chain for critical technologies like electric vehicles and renewable energy systems.
This U.S. company's new magnet could loosen China's stranglehold — Yahoo Finance
Niron's iron nitride magnets are made without rare-earth elements, using abundant materials like iron and nitrogen, which could reduce US dependence on foreign supplies.
Niron Sets Path to Establish Manufacturing of Rare Earth-Free Magnets — Magnetics Magazine
US demand for high-powered permanent magnets is projected to at least double by 2040, but current US output would fulfill only about 10% of that demand.
Niron Magnetics CEO: Five Steps to U.S. Permanent Magnet Dominance — National Association of Manufacturers
Minnesota's industrial building vacancy rate ended 2024 at 4.6%, which is two percentage points below the national average of 6.6%.
Industrial buildings still stars of the Twin Cities commercial real estate market — Star Tribune
There is a critical shortage of development-ready industrial sites across the US, prompting states to invest hundreds of millions in site readiness programs to attract large-scale projects.
Site Readiness Surge: States Bet Big to Attract Industrial Investment and Jobs — Great River Energy Economic Development
Minnesota offers the Job Creation Fund, providing financial incentives up to $2 million to new and expanding businesses that meet job creation and capital investment targets.
Explore Incentives / Do Business in Minnesota — Minnesota Department of Employment and Economic Development
Minnesota provides a capital investment rebate of up to $500,000 (or $1,000,000 for large projects) for manufacturing facilities, at 7.5% in Greater Minnesota or 5.0% in the Twin Cities Metro Area.
Minnesota Direct Financial Incentives — Area Development
📰 Source Timeline (1)
Follow how coverage of this story developed over time