- Details
- By Brian Edwards
- Economic Development
The Shakopee Mdewakanton Sioux Community is providing $150 million in debt financing to Niron Magnetics to support construction of the company’s first full-scale manufacturing plant in Sartell, Minn.
The financing will support construction, equipment and operational readiness at the 287,000-square-foot plant, which will put material-to-magnet production under one roof. The facility will have capacity to produce up to 1,500 tons of magnets annually and is expected to employ as many as 175 people when it begins operations in 2027.
The loan extends a decade-long investment relationship between the Dakota tribal nation and Minneapolis-based Niron. SMSC became an early investor in the company in 2016 and participated in its 2023 financing syndicate. A Niron spokesperson said the relationship and shared values led it to choose SMSC for the debt financing.
“We prioritize investments that align with our Dakota values — including being a good steward of the earth,” SMSC Chairman Cole Miller said. He added that the tribe saw Niron’s early potential to benefit the broader Minnesota community and has continued to support the company’s long-term success.
Niron is also pursuing up to $150 million in federal financing for the Sartell project. The U.S. Department of War’s Office of Strategic Capital issued a conditional commitment Aug. 7 for a 20-year direct loan to finance construction and equipment.
Niron said the two loans are separate. The federal financing remains subject to conditions including completion of due diligence and Niron raising a specified minimum amount of equity before definitive financing documents are executed.
Niron did not disclose the interest rate, maturity or other terms of the SMSC loan. The company also did not disclose the total cost of the Sartell project.
