European Commission to fund rare-earth magnet production in Estonia — ERR News

The European Commission has approved funding for a project by Canada-registered company Neo Performance Materials to establish a new production line for permanent rare-earth magnets in Estonia. This was reported by ERR News.

Production of up to 3,000 tonnes per year

The project will include the separation of rare-earth materials, metallization and magnet manufacturing. The planned capacity of the line will be up to 3,000 tonnes of permanent magnets annually. One-third of the output is intended to be supplied for offshore wind farms in European Union countries.

Neo Performance Materials owns the Silmet plant in Sillamäe and a magnet manufacturing facility in Narva, located in eastern Estonia. According to the project description, it is expected to prevent emissions of more than 3.4 million tonnes of CO2 equivalent over its first ten years of operation.

More current news is available on the UA.News Telegram channel Telegram.

Funding from the Innovation Fund

The European Commission selected 77 European projects in the field of net-zero technologies, which will receive a total of €3.4 billion from the EU Innovation Fund. The fund's resources will come from revenues of the European Emissions Trading System, ETS.

The final terms of the grant agreements are expected to be announced in the first quarter of 2027. The Silmet plant depends on raw material supplies from the aggressor state of Russia, but the company has pledged to abandon them. The facility drew attention after Estonia asked for its supplier to be exempted from European sanctions.