Europe’s largest permanent magnet manufacturing plant opened in Estonia in September. Located in Narva, in the country’s northeast on the border with Russia, the site – owned by the Canadian industrial group Neo Performance Materials – received €14.5 million in funding from the European Union. The goal: to help the continent break free, as much as possible, from China’s near-monopoly in producing rare earth-based magnetic components. Neo Performance Materials aims for initial annual output of 2,000 metric tons, later ramping up to 5,000 metric tons, mainly to supply wind turbine and electric vehicle battery manufacturers.

Europe, like the United States, has launched a race against time with China as the Asian giant becomes increasingly aggressive in the rare earths and critical minerals market. Panic spread through Western governments after Beijing announced stricter controls on rare earth exports on October 9. The new licensing system, introduced by the Chinese authorities in April in response to Donald Trump’s “Liberation Day” and the US decision to increase tariffs, has disrupted global supply chains.

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