GM and Stellantis invest $33 million in a company that manufactures magnets without the use of rare earth metals

General Motors and Stellantis Venture Capital are among the investors putting $33 million into a Minnesota startup that has developed technology to create magnets for electric car motors without the use of expensive rare-earth metals. Niron Magnetics of Minneapolis claims that it can make permanent magnets out of iron nitride, which is common and cheap in comparison to rare-earth minerals. The investment announced comes as the rise of electric vehicle sales begins to stall and GM and Ford begin to reduce their spending. However, Kai Daniels, supervising principal of GM Ventures, stated that the corporation is moving forward with its EV plans. “I can tell you that GM’s commitment to our EV strategy is as strong as ever,” she said in a press conference.

GM stated last month that it would delay the start of electric pickup truck production at a factory north of Detroit by roughly a year. Ford is delaying $12 billion in electric vehicle investment, including the construction of one of two new EV battery plants in Kentucky. Neither GM nor Stellantis will disclose the amount of money invested in Niron, but GM stated that the businesses will collaborate on EV magnet motor technology. Daniels stated that the investment will assist GM in locating its EV supply chain in North America, which is required for vehicles to qualify for federal tax credits in the United States. According to Niron Magnetics CEO Jonathan Rowntree, testing has shown that the company’s magnets function and the partnership with GM will help the company begin large-scale manufacture.