Honda Backs Niron Magnetics, a US Startup Making Rare-Earth-Free Magnets

Honda has taken a stake in Niron Magnetics, a Minnesota company developing magnets that do not rely on rare earth elements. The investment was confirmed as Niron marked the start of construction on a new manufacturing facility.

The move fits a broader push by automakers to reduce dependence on scarce and costly rare earth materials, which are heavily concentrated in a handful of countries and are essential to many electric vehicle motors. By supporting an alternative magnet technology, Honda is looking at a potential domestic supply route for a key component.

Niron has drawn attention for its iron nitride approach, which uses widely available inputs rather than rare earths. Details of the investment amount were not disclosed. The plant construction marks a step toward scaling production beyond lab-scale output.