Allison Ventures invests in clean earth magnet maker
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The venture capital arm of Allison Transmission announced Tuesday an investment in Niron Magnetics, whose permanent magnet made without rare-earth materials was named one of Time’s best inventions of 2023.
Allison Ventures joined Samsung Ventures, automotive supplier Magna and others in providing a $25 million round of funding, according to a Tuesday news release. The amount Allison contributed was undisclosed.
Minneapolis, Minnesota-based Niron’s Clean Earth Magnet is made of iron and nitrogen, eliminating the need for rare-earth mining, which “decimates ecosystems,” Time said in its October award’s designation.
The investment from Allison Ventures comes as the demand for rare-earth materials outpaces production, leading to supply chain vulnerabilities and environmental concerns, Allison Transmission said in its own news release. The partnership also addresses the growing demand for sustainable and environmentally friendly solutions for commercial-duty vehicle development.
“As the mobility industry evolves to cleaner technologies, it is critical to deliver those products in a sustainable manner. We are thrilled to partner with Niron Magnetics in their mission to enable global electrification and provide a sustainable alternative to rare earth magnets,” Mike Foster, executive director and chief technology officer of Indianapolis-based Allison Transmission, said. “Niron’s Clean Earth Magnet technology is meant to address the global demand and supply risks of rare-earth elements needed for electric motors and other critical applications.”
Earlier investors in Minneapolis-based Niron Magnetics included GM Ventures and Stellantis Ventures, the Niron news release said.
Allison Transmission designs and manufactures transmissions for commercial and defense vehicles. The global company employs about 3,000 people in Indiana.