Europe’s first rare‑earth magnet plant opens in Narva, Estonia

A new rare‑earth permanent magnet production facility has begun operations in Narva, Estonia, marking a strategic step in Europe’s effort to reduce dependence on overseas suppliers. Built by a Canadian manufacturer with EU support, the plant has an initial annual capacity of about 2,000 metric tonnes of magnet blocks — enough to equip over one million electric vehicles or roughly 1,000 offshore wind turbines each year. Permanent magnets are essential to high‑efficiency electric motors and wind‑turbine generators, so localising production strengthens supply‑chain resilience and can cut emissions associated with long transport routes. The facility sits in Ida‑Viru, a post‑industrial region targeted by the EU’s Just Transition funding; it currently employs around 80 people with plans to scale toward roughly 1,000 jobs as output and demand grow. The EU has earmarked €354 million to support the region’s green transition through 2027. Beyond immediate capacity gains, the project is being watched as a model for reshoring critical clean‑tech manufacturing and linking decarbonisation with regional economic regeneration. "This kind of factory will bring new industrial companies. Of course, it forces us to develop our workforce," said Katri Raik, Mayor of Narva.