NARVA, Estonia — Right on the Russian border, Europe’s first commercial-scale rare-earth magnet factory is starting to supply automotive and green tech customers from a forgotten corner of Estonia.
The project represents an act of defiance against Russian aggression. It’s a bid to counter China’s chokehold over critical minerals that is Beijing’s trump card in its escalating trade war with the United States. And it’s a vote of optimism regarding European industry, its backers say.
“The future of Europe’s competitiveness is here,” Estonian Prime Minister Kristen Michal said at the opening of the factory last month. On the day of the ceremony, Russian military jets intruded into Estonian airspace.
The first phase of the new factory, owned by Neo Performance Materials, will be capable of producing magnets for 1 million electric vehicles and 1,000 generators for the wind industry annually. These magnets make electric systems more efficient, and demand is picking up rapidly.
