Honda Motor Co. has invested in Minneapolis-base Niron Magnetics, which is commercializing rare-earth-free magnets, the companies said Wednesday in a statement.

Financial details were not disclosed.

The move occurs amid the auto industry’s shift toward more electric vehicles. EV adoption has slowed in recent years but is still expanding. Rare earth materials remain a major part of batteries needed for EV expansion.

Honda invests in companies through its Honda Xcelerator Ventures entity.

Honda and Niron said in a statement that the investment “builds on high expectations for innovative, next-generation rare-earth-free magnetic materials from Honda and will support continued commercialization of Niron’s rare-earth-free permanent magnet technology, as well as help scale the company’s manufacturing operations.”

The companies said “rare-earth-free permanent magnets offer a compelling alternative to conventional materials by reducing reliance on constrained global supply chains while supporting performance, cost stability and sustainability goals across electrified systems.”

China dominates critical materials needed for EVs.

Niron said its technology “is applicable across a wide range of applications, including automotive, robotics, industrial automation, emerging mobility platforms, AI and data center infrastructure and consumer electronics.”

Honda this year has retrenched from electric vehicle plan. In May , the company announced it canceled two EVs vehicles just months before production was scheduled to begin. The models were intended to debut in North America in late 2026 and were expected to be built at Honda’s Ohio manufacturing hub.

The Wednesday announcement seemed to show that Honda hasn’t given up on EVs.

“Niron Magnetics has an innovative permanent magnet technology that does not require rare earth materials. Most electric propulsion motors today use permanent magnets made from rare earth metals, which are subject to resource constraints and fluctuations in market conditions.

“Niron Magnetics is addressing these challenges, and Honda has high hopes for its potential,” Mahito Shikama, director, executive officer of Honda said in the statement.