Get insights into the permanent magnet industry and how Hertha's high-purity iron production will change the market dynamics.
Republished by AIC Engineering. All rights belong to the original publisher; see Source below.
Hertha targets US high-purity iron production for permanent magnets
“Hertha’s new 10,000 tonne pure plant will do two things,” Hertha chief executive officer Dr. Laureen Meroueh told Fastmarkets in an interview on Tuesday October 6. “One, it will of course produce high-purity iron [at] commercial scale for the magnets industry. And as our magnet suppliers are ramping up their production capacity, we’re also qualifying our iron and steel material for our future half a million tonne-per-year plant.”
Neodymium-iron-boron (NdFeB) permanent magnets are comprised of roughly 70% of high-purity iron. Hertha’s commercial plant will produce 10,000 tonnes a year of 99.95% high-purity iron, coming online in late 2027 with production starting in early 2028.
Currently, 94% of permanent magnets are sourced from China, according to Meroueh. “You can infer that 94% of high-purity iron is also made there,” Meroueh explained.
Hertha will supply around 30% of permanent magnet demand in the US with high-purity iron. Permanent magnets are used in electric vehicles, wind turbines, data centers, robotics and defense systems, Hertha explained.
US investment builds ex-China permanent magnet supply chains
The US has increased investment to the ex-China permanent magnet supply chain. Niron Magnetics received USD 150 million in funding for developing rare earth-free iron nitride permanent magnets in August, while Harena Rare Earths received USD 4.8 million for permanent magnets.
Federal funding for rare earths and permanent magnets totaled USD 2.9 billion back in June.
But many of the recent US investments have been rare earths focused. Hertha, according to Meroueh, “is honestly the last missing piece though in the US rare earth magnet supply chain.”
Chalyx technology targets lower-emissions iron and steel production
Chalyx’s technology can use any grade of iron ore, including low-grade fines that US mills cannot typically use, to produce high-purity iron, according to Hertha’s press release.
“We’re starting with high-purity iron to fill a critical gap in the domestic rare earth magnet supply chain, but the vision reaches much further,” said the chief executive on Thursday.
Once completed, Chalyx will produce iron and steel using up to 50% less emissions when using natural gas and up to 98% less emissions when using hydrogen, saving up to 25% in cost compared to production using a blast furnace.
“Successful commercial operations here will lay the foundation for our first 500,000-tonne-per-year steel mill,” said Meroueh.
Hertha plans 500,000-tonne US steel mill using domestic iron ore
Hertha invested USD 100 million into the steel mill, which will use domestic iron ore, mainly from Minnesota, and natural gas from Texas. Construction on the mill will begin once Chalyx proves itself commercially.
Hertha’s upcoming steel mill “can make any grade really,” Meroueh told Fastmarkets on October 6.
“We would be great at making electrical steel due to the high purity,” Meroueh said. “We can also make your basic rebar.”
Meroueh credits US President Donald Trump’s 50% Section 232 tariffs on steel to Hertha’s ability to produce both iron and steel domestically.
“The Section 232 tariffs…level out the playing field. The reality of the iron and steel industry is that there needs to be protectionist measures because we are battling against a country that is dumping steel at subsidized pricing,” Meroueh said at the groundbreaking ceremony on Thursday.
US electrical steel imports decline
In 2024, the US imported 39,523 tonnes of electrical steel, data from the International Trade Administration (ITA) showed. In 2025, that volume decreased by 34.45% to 25,513 tonnes. Most recently, 2026 year-to-date electrical steel imports stood at 23,798 tonnes.
Overall, steel imports into the US have dropped since the doubling of the Section 232 tariffs in June 2025.
In 2025, total steel imports stood at 22,930,357 tonnes, data from the ITA showed. In 2026 year to date, that volume dropped by 36.65% to 14,525,735 tonnes.
US steel production output and capacity utilization have also maintained higher levels throughout 2026.
Adjusted year-to-date raw steel production through October 3 was 71,967,000 short tons, at a capacity utilization rate of 79.0%, up by 5.3% from 68,362,000 tons produced in the corresponding period of 2025, when the capacity utilization rate was 77.1%, according to data from the American Iron and Steel Institute.
Section 232 tariffs contribute to higher US steel prices
Section 232 tariffs have contributed to higher domestic steel prices by limiting imports in an already tight market, where strong demand has outpaced supply, according to market participants.
Fastmarkets’ steel hot-rolled coil index, fob mill US Midwest, averaged USD 61.62 per hundredweight (USD 1,232.40 per short ton) in September 2026, up by USD 20.93 or 51.44% per hundredweight from an average of USD 40.69 per hundredweight a year earlier in September 2025.
“The tariffs [US President Donald] Trump has put on [are] ensuring we can reshore entire industries…now you see our trade deficit shrinking,” US Small Business Administration Administrator Kelly Loeffler said at the groundbreaking ceremony.
Source
- fastmarkets.com (2026-10-15)
- Original article: Hertha Metals breaks ground on high-purity iron facility to supply permanent magnet industry; steel production to follow
- Fastmarkets
- https://fastmarkets.com/insights/hertha-metals-breaks-ground-on-high-purity-iron-facility-to-supply-permanent-magnet-industry-steel-production-to-follow