Big automakers cut deal with startup to boost EV production without China’s help
GM and Stellantis Invest in Niron Magnetics to Find Alternatives to Rare Earth Minerals in EV Production
In a bid to discover alternatives to rare earth minerals in the production of electric vehicles, General Motors and Stellantis are investing in Niron Magnetics, a Minnesota-based company specializing in magnetic technology for EV motors.
The two automakers have contributed to Niron’s latest $33 million funding round, which will be used to advance the commercialization of Niron’s iron nitride-based Clean Earth Magnets.
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China currently dominates battery production, with car manufacturers heavily reliant on China’s rare earth materials such as terbium, dysprosium, praseodymium, and neodymium, which are widely used in EV batteries. However, Niron is focusing on permanent magnets and believes that iron nitride magnets are not only more magnetic than those made of neodymium and praseodymium, but also more abundant.
“We were drawn to invest in Niron by the impressive sustainability benefits that its Clean Earth Magnet technology offers for vehicles and the inherent scalability of their solution,” stated Adam Bazih, managing partner at Stellantis Ventures. “Making powerful magnets from plentiful commodity materials decouples new production from rare earth mine development and lowers overall environmental impact, which directly aligns with Stellantis’ commitment to reach carbon net zero by 2038.”
The exact investment amounts by GM and Stellantis have not been disclosed, but the companies have announced plans to collaborate on the development of EV magnet motor technology. According to Reuters, a source close to the deal revealed that GM invested $7 million, while Stellantis invested $5 million.
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Kai Daniels, supervising principal of GM Ventures, emphasized that this investment will play a crucial role in establishing a North American EV supply chain for the company, a key requirement for vehicles to be eligible for U.S. federal tax credits.
In mid-October, GM announced a delay in the production start of electric trucks from 2024 to late 2025, citing the need to prioritize capital investments due to the high demand for EVs. The company clarified that the delay was unrelated to the United Auto Workers strike, as GM and the UAW reached a tentative agreement two weeks ago, signaling an end to the strikes against Detroit automakers.
What long-term goals do General Motors and Stellantis hope to achieve by supporting the development and commercialization of iron nitride-based magnets
Ates the production of rare earth minerals, which are crucial for the manufacturing of electric vehicle components. With increasing demand for EVs, there is a growing concern about the limited supply of these minerals and the dependence on China for their availability. As a result, major automakers like GM and Stellantis are actively seeking alternative solutions to reduce their reliance on rare earth minerals.
Niron Magnetics has emerged as a promising player in this arena with its innovative technology. The company has developed iron nitride-based Clean Earth Magnets as an alternative to rare earth magnets, which are widely used in electric vehicle motors. These magnets provide comparable performance and can be produced using abundant and geopolitically stable materials, thus reducing the dependency on rare earth minerals.
Recognizing the potential of Niron’s technology, General Motors and Stellantis have made significant investments in the company. By contributing to Niron’s latest funding round, these automakers aim to support the development and commercialization of iron nitride-based magnets. This strategic partnership not only highlights the commitment of GM and Stellantis to sustainability but also signifies their determination to find sustainable solutions for EV production.
The investment in Niron Magnetics is a significant step towards achieving a more sustainable and resilient supply chain for electric vehicle manufacturers. By reducing their reliance on rare earth minerals, automakers can diversify their sourcing strategies and mitigate potential supply chain disruptions. Additionally, the production of iron nitride-based magnets could have positive environmental implications, as it eliminates the need for environmentally damaging mining practices associated with rare earth minerals.
Furthermore, this collaboration reflects the broader industry-wide efforts to address the environmental challenges posed by electric vehicle production. As the demand for EVs continues to rise, it becomes essential to find alternatives that not only meet performance requirements but also adhere to sustainable practices. The investment in Niron Magnetics aligns with the automakers’ long-term goals of reducing their carbon footprint and transitioning towards a greener future.
In conclusion, the investments by General Motors and Stellantis in Niron Magnetics highlight the ongoing efforts of major automakers to find alternatives to rare earth minerals in electric vehicle production. By supporting the development and commercialization of iron nitride-based magnets, these companies aim to reduce their dependency on China and enhance the sustainability of their supply chains. This investment not only signifies a significant milestone in the search for sustainable solutions but also emphasizes the industry’s commitment to a greener future.
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