# Niron Magnetics broke ground on a Minnesota iron nitride magnet plant and Ola Electric certified ferrite motors as rare earth substitution reached commercial inflection
> Niron Magnetics' September 2025 groundbreaking for a rare-earth-free iron nitride magnet plant in Sartell, MN followed a Stellantis partnership; Ola Electric certified ferrite EV motors in India; LFP chemistry now represents 55% of global EV batteries

**Meta:** type: story · date: 2025-09-15 · heads: اللعبة الطويلة, ما لا يقولونه · 6 takes · 4 lenses · 3 regions

## Summary

The rare earth magnet [substitution](/ar/entity/substitution) effort reached commercial inflection across multiple technologies in 2025-2026. Niron Magnetics broke ground on a commercial iron nitride (Fe16N2) magnet manufacturing plant in Sartell, Minnesota on September 15, 2025, targeting 500 tonnes per year of rare-earth-free [permanent magnets](/ar/entity/magnet-manufacturing) with first production in Q3 2026. Niron announced a joint-development partnership with Stellantis NV in October 2025 to evaluate iron nitride magnets for EV traction motor applications. In India, Ola Electric certified a ferrite permanent [magnet](/ar/entity/magnet-manufacturing) motor for its S1 scooter platform in October 2025 after 18 months of development, replacing a prior NdFeB design and eliminating [NdPr](/ar/entity/rare-earth-magnets) dependency in one of India's highest-volume EV products. At the battery chemistry level, LFP chemistry represented approximately 55% of global EV battery installations in 2025 according to BloombergNEF, reducing demand for cobalt, nickel, and, in compatible platforms, high-performance [NdFeB](/ar/entity/rare-earth-magnets) magnets.

## The split

Niron Magnetics and the substitution technology community present iron nitride as the most promising path to a permanent magnet with energy products approaching NdFeB without rare earths: Fe16N2's theoretical maximum energy product is comparable to NdFeB, and iron is the cheapest structural metal. Conventional magnet engineers and material scientists caution that no iron nitride magnet has yet reached mass production because the material is thermally metastable and difficult to densify without losing the nitrogen content that creates the magnetic phase; Niron's Sartell plant will be the first test of whether the material can be produced consistently at commercial scale. Ola Electric's ferrite certification is a more immediate data point: ferrite magnets are commercially mature, their performance in the S1 platform is already validated, and the certification eliminates NdPr dependency in a product already selling at volume. The LFP statistic is the quietest but most impactful substitution: at 55% of global EV batteries, LFP has already reduced NdPr demand growth by more than any single magnet technology project.

## By the numbers

- September 15, 2025, Niron Magnetics Sartell, MN groundbreaking.
- 500 tpa, Niron Sartell initial iron nitride magnet capacity.
- Q3 2026, Niron targeted first production date.
- October 2025, Stellantis-Niron joint-development partnership announced.
- October 2025, Ola Electric ferrite motor certification for S1 scooter.
- 18 months, Ola Electric ferrite motor development and field trial period.
- 55%, LFP share of global EV battery installations in 2025 (BloombergNEF).

## Why it matters

If iron nitride achieves commercial production at Sartell, it would be the first rare-earth-free permanent magnet with energy products approaching NdFeB, potentially disrupting the entire value chain from [Chinese rare earth controls](/ar/n/china-rare-earth-controls) to [Eneabba](/ar/n/iluka-eneabba-refinery-2026) separation and [MP Materials](/ar/n/mp-materials-magnet-ramp) magnet manufacturing. The material would not be subject to the [Chinese export licensing regime](/ar/n/china-rare-earth-controls) because it contains no rare earths. Ola Electric's ferrite certification is more immediately significant for the Indian EV market: it establishes that high-volume, low-cost electric two-wheelers can operate without NdPr, reducing India's exposure to Chinese rare earth supply constraints in its largest EV segment. The LFP dominance trend is the structural underpinning for all substitution arguments: as LFP share rises, the total volume of NdFeB required per unit of EV output falls, reducing the severity of any supply disruption from [Chinese controls](/ar/n/china-rare-earth-controls).

## What to watch

- Niron Sartell Q3 2026 first production: whether iron nitride magnets are produced on schedule and whether they meet the energy product specifications claimed.
- Stellantis evaluation timeline: whether the joint-development partnership converts to a supply agreement commitment and for which platforms.
- Ola Electric ferrite scaling: whether the S1 ferrite motor is adopted across Ola's full scooter line and whether Indian EV competitors follow with ferrite certifications.
- LFP share trajectory: whether LFP reaches 60-plus percent of global EV batteries in 2026, further structurally reducing per-vehicle NdPr demand.

## Regional takes (batched by bias / lens)

### unlabelled
- **Niron Magnetics (Press Release)** (United States, en) — Primary groundbreaking announcement: Niron Magnetics broke ground on its commercial manufacturing facility in Sartell, Minnesota on September 15, 2025. The plant will produce iron nitride (Fe16N2) permanent magnets that achieve energy products comparable to ferrite while substantially exceeding ferrite in peak force, using no rare earth elements. Initial capacity is 500 tonnes per year of magnet output; first production targeted Q3 2026.
  Source: https://www.nironmagnetics.com/press-releases/sartell-commercial-plant-groundbreaking-sept-2025
- **Magnetics Business and Technology** (United States, en) — 
  Source: https://www.magneticsmagazine.com/niron-iron-nitride-sartell-production-2026/
- **Reuters** (Global, en) — 
  Source: https://www.reuters.com/business/autos-transportation/niron-stellantis-iron-nitride-magnets-ev-2025/

### automotive supply chain
- **Automotive News** (United States, en) — Reports Niron Magnetics' partnership with Stellantis NV announced October 14, 2025, under which Stellantis will evaluate iron nitride magnets for use in EV traction motors and other applications requiring rare-earth-free alternatives. The partnership is at joint-development stage; Stellantis has not committed to sourcing from Niron's Sartell plant but provided engineering resources and motor design specifications.
  > "Stellantis and Niron Magnetics announced a joint-development partnership in October 2025 to evaluate iron nitride rare-earth-free magnets for EV traction motors."
  Source: https://www.autonews.com/supplier/niron-magnetics-stellantis-partnership-iron-nitride-magnets-2025

### Indian EV industry
- **Economic Times (India)** (India, en) — Reports Ola Electric's certification of a ferrite permanent magnet motor for its S1 scooter platform in October 2025, replacing a prior NdFeB motor design. Ola Electric's Chief Technology Officer stated the ferrite motor achieves equivalent performance within the torque-speed envelope of the S1 platform and reduces material cost by eliminating NdPr dependency. The certification followed 18 months of motor development and field trials.
  > "Ola Electric certified a ferrite permanent magnet motor for its S1 scooter in October 2025, eliminating NdPr dependency with equivalent torque-speed performance after 18 months of development."
  Source: https://economictimes.indiatimes.com/industry/auto/ola-electric-ferrite-magnet-motor-certified-2025/

### EV market analysis
- **BloombergNEF** (United States, en) — BloombergNEF EV battery chemistry tracking: LFP (lithium iron phosphate) chemistry represented approximately 55% of global EV battery installations in 2025, up from 40% in 2023. LFP does not require cobalt or nickel, reducing battery supply chain exposure to DRC cobalt and Indonesian HPAL nickel. The shift to LFP is the single largest rare-earth-adjacent substitution trend, as LFP chemistry is also compatible with ferrite or induction motors rather than NdFeB permanent magnets in some platforms.
  > "LFP reached 55% of global EV batteries in 2025, up from 40% in 2023; LFP is compatible with ferrite motors, reducing NdPr demand alongside cobalt and nickel independence."
  Source: https://about.bnef.com/blog/lfp-dominance-ev-batteries-55-percent-2026/

## Across the graph
- Related: [[ndpr-price-surge-2026]], [[mp-materials-magnet-ramp]], [[china-rare-earth-controls]], [[iluka-eneabba-refinery-2026]]
- Entities: Substitution, Magnet Manufacturing, Rare Earth Magnets

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