U.S. Backs Niron Magnetics with $70M; MP Materials Stock Drops
U.S. government agencies have backed Niron Magnetics with nearly $70 million in subsidies. The start-up, aiming to produce powerful magnets from common elements, has drawn investments from major automakers like Stellantis, General Motors, Volvo, and Samsung, totaling $150 million. Meanwhile, MP Materials, a key player in rare earth mining and magnet production, has seen its stock tumble following reports of this potential competition.
Niron Magnetics is constructing a Minnesota factory capable of producing 1,500 tons of magnets annually. These magnets are reported to be 18% more powerful than certain rare earth magnets. The company has attracted significant investment basics from automotive giants, indicating confidence in its technology.
MP Materials, with a substantial head start in mining and manufacturing operations, has strong financial backing. The U.S. government has taken an equity stake in the company, and it has secured investments from the Pentagon, JPMorgan Chase, Goldman Sachs, and Apple, totaling over $1.9 billion.
Niron Magnetics' progress and backing from major automakers suggest a competitive landscape in the magnet production sector. MP Materials' stock drop following these developments indicates market awareness of the potential threat. Both companies' success will likely depend on their ability to deliver on their promises and secure further investment calculator.
