Neo Performance Materials is establishing a magnet production plant with a research and development center in Narva City in the NE of Estonia (pop.54,000). . Magnets are made from rare earth metals and recycled magnets. The state supports the project with 18.75 million from the Just Transition Fund, Neo Performance Materials invests 81.25 million euros.
"Rare earth magnets are a key component in renewable energy technology, electric vehicles, data carriers, consumer electronics, medical devices and robotics. As the world needs to switch to a carbon-neutral economy, a strong increase in demand for such magnets is predicted. Today, there is no sustainable magnet supply chain in the European Union to support the increased demand, and there is no possibility to recycle already used magnets. With its factory, Neo Performance Materials creates a unique capability in Europe and thereby strengthens the reliability of supply chains and also our economy," said Kristjan Järvan Kristjan Järvan is an Estonian politician. , Minister of Entrepreneurship and Information Technology.
"Our team believes in the high potential of Ida-Virumaa and the city of Narva City in the NE of Estonia (pop.54,000). - we consider all local stakeholders as key partners in this investment, and we look forward to building the factory. Complementing our existing operations at NPM Silmet – the only commercial-scale rare earth separation facility currently operating in Europe – we are now developing a first-of-its-kind rare earth permanent magnet plant that will become an important part of the electric vehicle and wind generator supply chains in the European Union and North America,” said the President of Neo Performance Materials Constantine Karayannopoulos.
The construction of the factory will help implement green policy agreements and create new high-paying jobs in the region. Magnets produced at the factory are used in electric vehicles, wind power generators and other green technologies.
"Neo Performance Materials' investments will help the Ida-Virumaa region to create a very large number of new jobs with high added value and bring the existing production of Silmet to a higher level in the value chain. It is an important driver of development for the Ida-Virumaa region, around which it is possible to build an ecosystem of innovative companies with even more complex and expensive products," said Lauri Lugna, head of the joint institution of EAS and KredEx.
The Ida-Virumaa measure of the Just Transition Fund is aimed at the implementation of large-scale investments based on the principles of climate neutrality, which help to diversify the economy of Ida-Virumaa, develop new production with high added value and thereby create new jobs and value chains in the county.
The planned total budget of the support measure is 153 million euros, from which the implementation of at least 20 large projects and the creation of at least 1,000 new jobs in Ida-Virumaa are expected to be supported in the period 2022-2026. The maximum amount of support depends on the total volume of the project, activities and planned results, and as a rule ranges from 500,000 euros to 19 million euros.