Silmet in Estonia to abandon Russian raw materials by the end of the year — ERR News

Estonian rare earth metals producer Silmet, which operates in Sillamäe, plans to end its dependence on raw materials from Russia by the end of 2026. The transition to new suppliers will be accompanied by production cuts and temporary shutdowns of the existing light rare earth separation plant, ERR News reports.

Final shipment

Silmet's parent company, NEO Materials Group, has informed employees and Estonian state institutions that it expects the final shipment from the Solikamsk Magnesium Plant, according to Postimees. The publication writes that this batch should be sufficient for the company for the coming winter.

Silmet has pledged to sever supply-chain ties with the Solikamsk Magnesium Plant by the end of the year. In a statement on its website, NEO said that as part of preparations for Silmet 2.0, the company is completing its current raw material supply arrangement and will move to new suppliers.

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Company representative Vasileios Tsianos told Postimees that additional information would be disclosed when the appropriate time comes.

Position of the Estonian authorities

Estonian Prime Minister Kristen Michal told Postimees that Russian raw materials pose a critical risk to production, while their purchase brings money to those who should not profit from the Western world.

Earlier, ERR News reported that the Russian company supplying rare earth elements to Silmet had been removed from the proposed 22nd package of European Union sanctions at Estonia's request. Foreign Minister Margus Tsahkna said on October 10 that Estonia had pressured NPM Silmet and its owner, Neo Group, to find alternative suppliers and had set a deadline for ending cooperation with the Russian supplier.