DETROIT (AP) — The enterprise capital arms of General Motors and Stellantis are amongst investors sinking $33 million right into a Minnesota company with technology to make magnets for electric vehicle motors without using expensive rare-earth metals.

Niron Magnetics of Minneapolis says it will probably construct everlasting magnets by utilizing iron nitride, which is abundant and cheap compared with rare-earth minerals.

The investment announced Wednesday comes as electric vehicle sales growth is beginning to slow and GM and Ford have began to drag back on their spending. But Kai Daniels, supervising principal of GM Ventures, said the corporate is proceeding with its EV plans.

“I can let you know today that GM’s commitment to our EV strategy is as strong as ever,” she told reporters.

Last month GM announced that it was delaying by a few yr the beginning of electrical pickup truck production at a factory north of Detroit. Ford is pushing back $12 billion of EV investment including postponing construction of certainly one of two recent EV battery factories in Kentucky.

Neither GM nor Stellantis would say how much they’re investing in Niron, but GM said the businesses will co-develop EV magnet motor technology. Daniels said the investment will help GM locate its EV supply chain in North America, a key component to make vehicles eligible for U.S. federal tax credits.

Niron Magnetics CEO Jonathan Rowntree said testing shows that the corporate’s magnets work, and the agreement with GM will help the corporate start large-scale manufacturing.

“The critical path for us is basically scaling the technology, so it’s implementing the brand new equipment, the larger scale equipment, to ramp up our manufacturing,” he said.

Niron has 60 employees and plans to double that number by the top of the yr, and double again next yr because it makes more magnets.

The magnets might be utilized in consumer electronics, industrial motors, pumps, compressors, wind turbines and other products, Niron said.