EU-Funded Magnet Factory in Estonia Expected to Create Up to 1,000 Jobs
Work News | New Stardom
Exterior of Neo Performance Materials Magnet Factory in Narva, Estonia, completed in 2025.
© NPM Narva, 2025. Photo: Sergei Nehhožin / EC – Audiovisual Service
Neo Performance Materials, a Canada-based company specializing in advanced rare-earth materials, has opened a new rare-earth permanent magnet factory in Narva, Estonia. The facility, which is the largest of its kind in Europe according to company and EU statements, is supported by the European Union’s Just Transition Fund. Its output will include neodymium-iron-boron (NdFeB) magnets used in electric vehicles, wind turbines, and electronics.
The total investment in the Narva factory is estimated at between €75 million and €100 million, including approximately €14 million funding from the EU’s Just Transition Fund. The funding aims to help regions shift away from fossil-fuel-based industries, and Ida-Viru County has historically relied on oil shale extraction and processing.
Job Creation and Skills Demand
The Narva facility is expected to create up to 1,000 jobs in the region as the factory expands. Initial employment at launch is reported at around 80 jobs. The company states these roles will include production line operators, engineers, maintenance staff, logistics specialists, and administrative personnel.
Estonian authorities have reported that local training and retraining programs are being launched in partnership with technical schools, using funds from the Just Transition Fund, to help former oil shale workers qualify for new roles in advanced manufacturing.
At the inauguration event, Narva Mayor Katri Raik said, “This project is a vote of confidence in the city’s future despite its location on the EU’s border with Russia.”
Ida-Viru County has experienced job losses in recent years due to the decline of the oil shale industry. Estonian government sources state that the new factory is part of a broader strategy to create alternative employment and attract talent to the region.
Neo Performance Materials has a long-standing presence in Estonia through its Silmet rare earth separation plant in Sillamäe. With the Narva factory, the company has established a facility for downstream manufacturing of rare earth magnets in the EU.
The European Commission and Estonian officials have noted that more than 90% of rare-earth magnets used in the EU are imported from China. The Narva factory is described by EU representatives as a step toward increasing domestic production capacity for critical components used in green and digital industries.
At the opening, Estonian Prime Minister Kristen Michal described the Narva factory as “the most cost-efficient magnet factory ever built in the Western world.” Rahim Suleman, CEO of Neo Performance Materials, stated, “Europe’s dependence on imports is no longer sustainable, especially with demand set to triple in the coming decade.
Estonian media report that regional authorities and educational institutions are working to align technical training programs with the needs of the new facility. Areas of focus include materials science, automation, and industrial quality control.
According to a European Commission press release, Executive Vice-President for Cohesion and Reforms Raffaele Fitto said:
“The inauguration of the magnet factory is a perfect example of how Cohesion Policy can make a real difference for a region and its citizens by creating new jobs and boosting the economy. But not only that: this EU-funded project will also contribute to increasing the competitiveness of the whole EU. It shows once again how Cohesion policy is a win-win policy for all Europeans.”
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