Allison Ventures Invests in Niron Magnetics’ Revolutionary Clean Earth Magnet Technology
Allison Ventures of Allison Transmission has made a strategic investment in Niron Magnetics, a company that has developed a pioneering technology for creating permanent magnets without the use of rare-earth materials. This breakthrough invention by Niron Magnetics, called the Clean Earth Magnet, has already gained recognition by being listed among Time’s best inventions of 2023.
The investment by Allison Ventures was part of a $25 million funding round that also included contributions from Samsung Ventures and Magna, a leading automotive supplier, among others. While the specific amount of Allison Ventures’ investment remains undisclosed, this move further emphasizes the growing need for sustainable and eco-friendly solutions within the commercial-duty vehicle development sector.
Based in Minneapolis, Minnesota, Niron Magnetics has successfully developed the Clean Earth Magnet using iron and nitrogen, which eliminates the harmful environmental impact associated with rare-earth mining. This innovation comes at a crucial time, as the demand for rare-earth materials is surpassing production levels, resulting in supply chain vulnerabilities and environmental challenges.
Mike Foster, the executive director and chief technology officer at Allison Transmission, has highlighted the significance of partnering with Niron Magnetics to promote global electrification through sustainable alternatives to rare earth magnets. This technology is deemed essential in addressing the global demand and supply risks associated with rare-earth elements, which are crucial for electric motors and other vital applications.
It’s worth noting that Niron Magnetics has already attracted investment from notable players in the industry, such as GM Ventures and Stellantis Ventures. Allison Transmission, renowned for its expertise in designing and manufacturing transmissions for commercial and defense vehicles, currently employs around 3,000 individuals in Indiana.
With this investment, Allison Ventures is demonstrating its commitment to driving innovation and sustainability in the commercial-duty vehicle industry. By supporting Niron Magnetics’ groundbreaking technology, they are contributing to the development of environmentally friendly solutions that seek to address the challenges posed by rare-earth materials.
Analyst comment
Positive news: Allison Ventures’ strategic investment in Niron Magnetics and their Clean Earth Magnet technology highlights the growing need for sustainable solutions. This breakthrough innovation addresses environmental challenges and supply chain vulnerabilities in the rare-earth materials market. The investment further promotes global electrification and fosters innovation and sustainability in the commercial-duty vehicle industry.
