Rosatom and the Russian Ministry of Industry and Trade signed a special investment contract to create a production facility for permanent rare-earth magnets

On 14 February 2024, as part of the International Exhibition and Forum “Russia” in Moscow, a special investment contract (SPIC) was signed for the project to establish Russia's first large-scale production of permanent rare-earth magnets in the city of Glazov, Udmurt Republic.

The parties to the SPIC were the Ministry of Industry and Trade of the Russian Federation, as well as enterprises of Rosatom's Fuel Division - LLC Rusatom MetalTech (an integrator company of Rosatom's Fuel Division in the Metallurgy area) and LLC Elemash Magnet, which acts as a direct investor in the project implementation.

The planned production capacity of the future site is 1,000 tonnes per year, which is enough to approximately fully meet the current needs of the domestic industry. The total area of the territory will be 20 thousand square metres. The demand for such products in the world is growing due to the transition to clean energy and electric transport, as permanent magnets are the most important component in the manufacture of electric motors and generators of wind power plants.

In accordance with the state requirements for products (in accordance with Russian Government Resolution No. 719 “On Confirmation of Production of Industrial Products on the Territory of the Russian Federation”), Rosatom will gradually ensure full localisation of production of permanent rare-earth magnets by the time the new facility in Glazov is commissioned. The SPIC will be valid until the production is launched, which will make it possible to cover the needs for supplies of magnetic products for new wind farms, electric propulsion projects and other industries.

“As part of the project, it is planned to establish a plant for large-tonnage production of permanent rare-earth magnets in a full cycle in the Udmurt Republic, with a design capacity of about 1,000 tonnes of magnets per year. The new plant will guarantee import substitution of supplies of permanent magnets, which are crucial components for industries such as wind power and electric transport, and will also give an impetus to the development of mining and processing projects in the field of rare and rare-earth metals. This will ensure constant demand for a number of key rare earth elements,” said Denis Manturov, Deputy Prime Minister and Head of the Ministry of Industry and Trade of Russia.

“By 2028, it is planned to reach a production capacity of about 1,000 tonnes per year of permanent rare earth magnets based on the domestic mineral raw material base, while there is a prospect of expanding production to 3,000 tonnes after 2030. “The special investment contract signed today clearly demonstrates the importance for the country of creating a large-tonnage production of permanent rare-earth magnets,” said Andrey Andrianov, General Director of Rusatom MetalTech LLC.

“The construction of the new plant symbolises a huge step for our company into a new technological era of permanent magnet production. This will be Russia's first large-capacity production facility based on dry technology, which will make it possible to manufacture high-grade magnetic products with minimal costs. This will be possible thanks to the most modern equipment and selected technological solutions. Hydrometallurgical processing will ensure the return of technological waste to the production process, thus closing the technological cycle,” emphasised Valentin Fetisov, General Director of Elemash Magnet LLC.

“Specialised personnel are needed for such narrowly focused production. For example, Rosatom has introduced additional support measures for students at the Glazov Polytechnic College as part of the Professionality programme. In addition, the renovation of the educational institution's dormitory is also in the future plans - while the investor will start research. We have also developed a project “Work in Udmurtia” to attract specialists to the region. These are packages of offers on employment and social guarantees in the republic, which are necessary for those who decided to move to us with their families. According to the project it is planned to attract more than 7 thousand people to the region in the period of 2024-2026”, - added the Head of the Udmurt Republic Alexander Brechalov.