The European Commission is providing funding to Silmet's parent company. This money will help establish a new production line in Estonia.
The new line will produce permanent magnets from rare metals. Up to 3,000 tons of these magnets will be produced annually. One-third of them will go to European wind farms.
This project will help reduce CO2 emissions. In the first 10 years, emissions will decrease by 3.4 million tons.
The funding comes from the European Union's innovation fund. At the same time, 84 projects were left without funding due to insufficient resources.
Foreign Minister Margus Tsahkna said this support is very important. It will help end dependence on Russian raw materials.
Tsahkna said it will provide Estonia with new jobs. It will also help strengthen European industry.
Silmet's plant has pledged to stop buying raw materials from Russia. Previously, the plant did this extensively.