Supply Chain Resilience and Defense Innovation: Strategic Equity Positioning in Niron Magnetics and Moog Inc.

The U.S. rare-earth-free magnet sector is emerging as a linchpin of national security and industrial resilience, driven by a confluence of geopolitical pressures, technological innovation, and aggressive federal policy. At the forefront of this transformation are two companies-Niron Magnetics and Moog Inc.-whose strategic alignment with U.S. Department of Defense (DoD) initiatives and private-sector partnerships positions them as high-conviction investments in a sector poised for exponential growth.

The Geopolitical Imperative: Why Rare-Earth-Free Magnets Matter

China's dominance in rare-earth mineral production-accounting for over 60% of global supply-has long been a vulnerability for U.S. defense and industrial sectors. Rare-earth elements (REEs) are critical to high-performance magnets used in electric vehicles, wind turbines, and precision-guided munitions. However, the U.S. has made strides in recent years to decouple from this dependency. According to a report by Breaking Defense, the DoD's Acquisition Transformation Strategy (ATS) explicitly prioritizes "domestic production of critical materials" to secure supply chains. This has catalyzed a wave of public-private partnerships, with Niron and Moog emerging as key players.

Niron Magnetics: Scaling Iron Nitride Technology for National Security

Niron Magnetics, a pioneer in iron nitride-based magnets, has secured a pivotal role in this transition. Its technology eliminates reliance on REEs entirely, using abundant materials like iron and nitrogen to produce high-performance magnets. In January 2025, the company was awarded a $52.2 million tax credit under the Section 48C Advanced Energy Project program to build a full-scale manufacturing facility in Sartell, Minnesota according to company announcements. This facility, expected to create 175 jobs, will produce 1,500 tons of rare-earth-free magnets annually by 2027, with plans for a second plant capable of 10,000 tons by 2029 as reported by Magnetics Magazine.

Niron's CEO, Jonathan Rowntree, has been vocal about the strategic importance of this work. In November 2025, he testified before the U.S. House Select Committee on urgent action needed for rare-earth alternatives. His testimony underscored the urgency of reducing foreign dependencies, particularly in defense applications where supply chain disruptions could cripple critical systems.

The company's partnerships with automotive giants like Stellantis and Samsung, along with a $300 million investment pipeline, further validate its commercial viability. Meanwhile, the DoD's definitive $12.5 million contract for Niron's magnets signals direct institutional confidence in its technology.

Moog Inc.: Bridging Magnets and Motion Control for Defense Modernization

Moog Inc., a leader in precision motion control systems, has also pivoted to address supply chain vulnerabilities. While traditionally reliant on rare-earth magnets for its actuators and motors, Moog has partnered with USA Rare Earth to localize neodymium magnet production for data center cooling systems. This collaboration, formalized via a memorandum of understanding (MOU), includes prototyping and testing for Moog's CoreMotion™ coolant distribution pumps, with production slated for 2026 as reported by Rare Earth Exchanges.

However, the more strategically significant development is Moog's 2025 partnership with Niron Magnetics to develop rare-earth-free actuator designs for defense applications according to a BusinessWire report. According to a BusinessWire report, the collaboration focuses on integrating Niron's iron nitride magnets into guided munitions systems and precision mechanical motion solutions as detailed in a Yahoo Finance article. This aligns with the DoD's ATS, which emphasizes reducing reliance on foreign REEs while enhancing operational readiness as reported in the BusinessWire announcement.

Moog's expertise in converting electrical signals into precise mechanical motion-critical for systems like missile guidance and drone stabilization-pairs seamlessly with Niron's material innovation. The partnership not only diversifies Moog's supply chain but also positions it to capitalize on the DoD's $1.4 billion investment in rare-earth magnet startups, including Vulcan Elements and ReElement Technologies as reported by the National Association of Manufacturers.

The Synergy of Public and Private Investment

The U.S. government's role in this sector cannot be overstated. Beyond direct contracts, federal programs like the Section 48C tax credit and the Minnesota Forward Fund have injected over $60 million into Niron's infrastructure. Similarly, the DoD's definitive $620 million loan to Vulcan Elements for a rare-earth magnet facility reflects a broader commitment to vertical integration of supply chains.

For investors, this ecosystem of support creates a flywheel effect: government funding de-risks private investment, while corporate innovation accelerates technological adoption. Niron's iron nitride magnets, for instance, are already being tested in variable flux motor designs, a breakthrough that could disrupt both civilian and defense markets.

Investment Thesis: Equity Positioning in a National Security-Driven Sector

The convergence of U.S. industrial policy, defense modernization, and private-sector innovation makes Niron and Moog compelling long-term investments. Niron's first-mover advantage in rare-earth-free magnet production, coupled with its DoD contracts and corporate partnerships, positions it as a critical node in the domestic supply chain. Meanwhile, Moog's integration of Niron's technology into defense-grade motion systems ensures its relevance in a sector where operational readiness is non-negotiable.

For equity investors, the risks are mitigated by the scale of government support and the urgency of geopolitical imperatives. As the DoD accelerates its push for supply chain resilience, companies like Niron and Moog are not just beneficiaries-they are architects of a new industrial paradigm.