Estonian-based rare earth metals maker Silmet has announced the construction of a magnet factory and R&D centre in the Estonian city of Narva. Canadian Neo Performance Materials (NPM), the owner of Silmet, is set to invest €81.25M, and Estonia will add €18.75M through the Just Transition Fund. The facility is believed to transform the region’s economy, providing jobs and paving the way to a clean energy future.

Silmet is a company that produces rare earth metals and alloys. They are based in Estonia and have been in business for almost 100 years, exporting globally. Their products are used in a variety of industries, including electronics, optics, and metallurgy.

The demand for magnets is growing as the world moves towards a clean energy future, with the automotive industry as the largest end-use industry of magnets. The average hybrid or electric vehicle uses between 2 and 5 kg of rare earth magnets, depending on the design.

The new factory in Narva will have the capacity to produce magnets made of rare earth metals and recycled ones. It’s expected to create hundreds of new jobs. The facility will also include an R&D centre, which will help to develop new materials and applications for magnets. Currently, the US, China, and Japan are the largest producers of magnets in the world. Silmet’s new magnet factory will be the first of its kind in Estonia, and it will also play a strategic role in Europe.