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
Summary
The rare earth magnet 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 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 motor for its S1 scooter platform in October 2025 after 18 months of development, replacing a prior NdFeB design and eliminating NdPr 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 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 to Eneabba separation and MP Materials magnet manufacturing. The material would not be subject to the Chinese export licensing regime 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.
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.