Rare Earths Norway invests in pilot for Europe’s future supply of rare earths for permanent magnets

The decision to build the pilot marks a significant milestone for Rare Earths Norway (REN) and the industrial development of the Fen Complex, Europe’s largest documented REE deposit.

“This investment is a concrete step towards bringing the Fen deposit into production. The pilot will allow us to validate our processing route, generate essential operating data and supply rare earth products to European partners for test production of metal and magnets", says Håvard Moe, CEO of Rare Earths Norway.

Through the pilot program, the company aims to contribute to a more diversified and resilient European supply of critical raw materials, helping Europe address strategic challenges related to industrial competitiveness, the energy transition and security.

“Europe’s dependence on imported rare earths is a strategic vulnerability we can no longer afford to ignore. The Fen Complex has the potential to become a cornerstone of Europe’s rare earth supply chain. REN’s investment in this pilot plant marks a critical step towards turning that potential into industrial reality. Through networking, funding and expertise, EIT RawMaterials helps accelerate this transition, laying the foundations for a resilient European rare earth industry that can compete globally and secure the materials essential to Europe’s future” says Bernd Schäfer, CEO, Managing Director, EIT RawMaterials.

Pilot plant and funding

The pilot plant is scheduled to commence operations in the third quarter of 2027. The project has a total budget of EUR 24 million, including EUR 5.4 million in funding from Innovation Norway and EUR 1.9 million from the Telemark Development Fund (TUF).

“Developing new value chains for critical raw materials requires both technology development and industrial scale-up. This pilot will enable Rare Earths Norway to verify its technology and reduce risk on the path towards commercial production. This is exactly the kind of industrial development Innovation Norway is here to support” says Håkon Haugli, CEO of Innovation Norway.

“TUF welcomes REN’s decision to establish a pilot plant for the Fen project and is pleased that the EUR 1.9 million grant has helped make this possible. Our involvement reflects our belief that the project is important for local and regional development and of strategic significance to Europe”, says Terje Riis-Johansen, Chair of TUF and County Mayor of Telemark.

Environmental responsibility

Improving environmental performance and advancing sustainability are key performance indicators for the pilot programme. The plant will develop and test processes that are critical to the environmental performance of future operations. By producing and assessing tailings and other residues under realistic operating conditions, the pilot will provide essential knowledge for responsible resource management and efforts to minimise environmental impacts. This work will support Norway’s Mineral Strategy and its ambition to develop the world’s most sustainable mineral industry.

Progress at the Fen Complex

The investment decision follows several important developments over the past year, including REN’s updated mineral resource estimate  and the Norwegian Government’s move to initiate a state-led zoning process for the Fen area.

The updated mineral resource estimate increased the documented total rare earth oxide content of the combined mineral resources, from 8.8 million tonnes to 15.9 million tonnes. Furthermore, the project has achieved the category of Indicated for the first time, showing a higher degree of knowledge and lower geological risk.

The Norwegian Government hascommitted to securing final approval for a regulated mining and mineral processing area by 2028, while aiming to complete the process by the end of 2027. This initiative is expected to accelerate the development of REN's Fen Complex project and reduce the time required to commence production.

The pilot plant will be established in an existing industrial facility in Ulefoss, strategically located near the Fen deposit. It will become an integral part of REN’s geological exploration, research and development activities. The investment represents an important step in REN’s long-term strategy to build a strong technology and operations organisation close to the deposit.