Today, the first project that receives support from the Just Transition Fund (JTF), is launched in the city of Narva, in Estonia. The EU funding supports the construction of a factory producing rare earth magnets, which are magnets with the highest magnetic field strength. The facility will also include an R&D centre, which will help develop new materials and applications for the magnets. Magnets are important for Europe's energy transition and can be used in wind turbines and in hybrid and electric vehicles.
- 28 June 2023
Thanks to an EU grant of €18.75 million, the factory will create 1,000 new jobs in one of the most deprived regions in Estonia. This will support the economic diversification of the Ida-Viru region, whose economy is traditionally focused on the carbon-intensive extraction of oil shale.
Commissioner for Cohesion and Reforms, Elisa Ferreira, said: “This important project will help the transformation of a region, which has been traditionally associated with oil shale extraction, into a leading region of the European magnet industry, increasing in the process Europe's autonomy in clean technologies. The transformation this project will bring to the region showcases the power of the Just Transition Fund. I am happy to see that the first stone of the magnet factory is now on the ground.”
A launch event will take place on the factory site starting at 13:00 CEST and will be addressed by Commission President Ursula von der Leyen via a video message.
Estonia has committed to stop electricity production from all oil shale by 2035, to phase out oil shale in energy production by 2040 and to reach climate neutrality by 2050.
The JTF supports the territories which are most affected by the transition towards a climate-neutral economy. This project is in line with the objectives of the Commission proposal for a Critical Raw Material Act, which aims to develop European capacities to reduce our strategic dependencies and to create resilient supply chains.
In the period 2021-2027 Estonia will receive €354 million from the JTF.