Startup secures US government funding to launch high-purity iron production
When it comes to rare earths, permanent magnets are currently a key focus. Neodymium-iron-boron (NdFeB) magnets in particular are essential components in electric motors and numerous military applications. However, their production requires more than rare earth elements alone: around 70% of an NdFeB magnet’s weight is iron, which must meet particularly high purity standards for magnet manufacturing.
Startup Hertha Metals aims to close a critical gap in the US permanent magnet value chain, as there is currently no domestic production of high-purity iron in the United States. As the company announced on Tuesday, it has raised $133.65 million to build a production facility in Texas. Annual capacity is expected to reach 10,000 tonnes.
Hertha’s process can operate with either natural gas or hydrogen. This provides flexibility and could allow the company to lower emissions over time as hydrogen becomes more widely available.
New US Military Sourcing Rules from 2027
Domestic iron production is also gaining importance because of new procurement rules issued by the US Department of Defense. From January 2027, the rules will generally cover the entire NdFeB magnet supply chain, from the mining of neodymium, iron and boron through to the production of finished magnets. Exceptions are provided, including for certain commercially available products, recycled magnets and cases in which compliant materials are not available in sufficient quantities.
Photo: maki_shmaki
