On February 14, 2024, within the framework of the Russia International Exhibition-Forum in Moscow, a special investment contract (SPIC) was signed for the project to create the first Russian large-capacity 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 the enterprises of Rosatom Fuel Company - Rusatom Metal Tech LLC (an integrator company of Rosatom State Corporation Fuel Company in the Metalurgy area) and Elemash Magnet LLC acting as a direct investor in the project implementation.
The planned production capacity of the future site is 1,000 tons per year, which is enough to almost fully meet the current needs of the domestic industry. The total area of the territory is 20,000 m2. The demand for such products in the world is growing due to the transition to clean energy and electric transportation, as permanent magnets are the most important components in the manufacture of electrical engines and generators of wind power plants.
Pursuant to the state requirements for products (under Russian Government Resolution No. 719 “On Confirmation of Production of Industrial Products on the Territory of the Russian Federation”), Rosatom will have gradually ensured full localization of permanent rare-earth magnets production by the time the new facility in Glazov is commissioned. The SPIC will be in effect until the production is launched, which will make it possible to cover the demand for supplies of magnetic products for new wind power plants, electric propulsion projects and other industries.
“As part of the project, it is planned to create a plant for large-capacity full-cycle production of permanent rare-earth magnets in the Udmurt Republic, with a design capacity of about 1,000 tons of magnets per year. The new plant will guarantee import substitution of supplies of permanent magnets - the most important components for such industries as wind power and electric transportation, 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,” Denis Manturov, Deputy Prime Minister and Head of the Russian Ministry of Industry and Trade, said.
“By 2028, it is planned to reach the production capacity of about 1,000 tons per year of permanent rare-earth magnets based on domestic mineral raw material base, while there is a prospect of expanding production to 3,000 tons after 2030. The special investment contract signed today vividly demonstrates the importance for the country of creating a large-tonnage production of permanent rare-earth magnets,” Andrey Andrianov, General Director of Rusatom Metal Tech LLC, said.
“The construction of the new plant symbolizes a great step for our company into a new technological era of permanent magnet production. It will be the first large-capacity production facility in Russia, 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 cutting-edge equipment and selected technological solutions. Hydrometallurgical redesigns will ensure the return of technological waste to the production process, thus closing the technological cycle,” Valentin Fetisov, General Director of Elemash Magnet LLC, emphasized.
“Such narrow-focused production requires expert personnel. For example, Rosatom has introduced additional support measures for students at Glazov Polytechnic College as part of the Professionality program. Besides, the renovation of the educational institution’s hostel is also in the prospective plans - while the investor is starting research. Also, to attract specialists to the region we have developed the Work in Udmurtia project. These are employment packages and social guarantees in the republic which are necessary for those who decided to move to us with their families. Under the project, it is planned to attract more than 7,000 people to the region for the period of 2024-2026”, Alexander Brechalov, Head of the Udmurt Republic, said.
The parties to the SPIC were the Ministry of Industry and Trade of the Russian Federation as well as the enterprises of Rosatom Fuel Company - Rusatom Metal Tech LLC (an integrator company of Rosatom State Corporation Fuel Company in the Metalurgy area) and Elemash Magnet LLC acting as a direct investor in the project implementation.
The planned production capacity of the future site is 1,000 tons per year, which is enough to almost fully meet the current needs of the domestic industry. The total area of the territory is 20,000 m2. The demand for such products in the world is growing due to the transition to clean energy and electric transportation, as permanent magnets are the most important components in the manufacture of electrical engines and generators of wind power plants.
Pursuant to the state requirements for products (under Russian Government Resolution No. 719 “On Confirmation of Production of Industrial Products on the Territory of the Russian Federation”), Rosatom will have gradually ensured full localization of permanent rare-earth magnets production by the time the new facility in Glazov is commissioned. The SPIC will be in effect until the production is launched, which will make it possible to cover the demand for supplies of magnetic products for new wind power plants, electric propulsion projects and other industries.
“As part of the project, it is planned to create a plant for large-capacity full-cycle production of permanent rare-earth magnets in the Udmurt Republic, with a design capacity of about 1,000 tons of magnets per year. The new plant will guarantee import substitution of supplies of permanent magnets - the most important components for such industries as wind power and electric transportation, 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,” Denis Manturov, Deputy Prime Minister and Head of the Russian Ministry of Industry and Trade, said.
“By 2028, it is planned to reach the production capacity of about 1,000 tons per year of permanent rare-earth magnets based on domestic mineral raw material base, while there is a prospect of expanding production to 3,000 tons after 2030. The special investment contract signed today vividly demonstrates the importance for the country of creating a large-tonnage production of permanent rare-earth magnets,” Andrey Andrianov, General Director of Rusatom Metal Tech LLC, said.
“The construction of the new plant symbolizes a great step for our company into a new technological era of permanent magnet production. It will be the first large-capacity production facility in Russia, 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 cutting-edge equipment and selected technological solutions. Hydrometallurgical redesigns will ensure the return of technological waste to the production process, thus closing the technological cycle,” Valentin Fetisov, General Director of Elemash Magnet LLC, emphasized.
“Such narrow-focused production requires expert personnel. For example, Rosatom has introduced additional support measures for students at Glazov Polytechnic College as part of the Professionality program. Besides, the renovation of the educational institution’s hostel is also in the prospective plans - while the investor is starting research. Also, to attract specialists to the region we have developed the Work in Udmurtia project. These are employment packages and social guarantees in the republic which are necessary for those who decided to move to us with their families. Under the project, it is planned to attract more than 7,000 people to the region for the period of 2024-2026”, Alexander Brechalov, Head of the Udmurt Republic, said.
For information
A special investment contract is a government policy instrument intended to stimulate investment in industrial production in Russia. Under a SPIC, an investor enters into an agreement with the state which specifies the company’s obligations to implement an investment project as well as the state’s obligations to ensure sustainable business conditions and provide state support measures. The conclusion of a SPIC is the basis for obtaining the “Made in Russia” status (necessary, in particular, to fulfill the conditions for the supply of permanent magnets for new wind power generation).
The Fuel Company of Rosatom State Corporation (Rosatom Fuel Company TVEL) includes enterprises for fabrication of nuclear fuel, uranium conversion and enrichment, production of gas centrifuges, as well as research and development organizations. As the sole supplier of nuclear fuel for Russian NPPs, TVEL provides fuel for more than 70 power reactors in 15 countries, research reactors in nine countries, and transport reactors of the Russian nuclear fleet. Every sixth power reactor in the world is fueled by TVEL. Rosatom Fuel Company is the world’s largest producer of enriched uranium, as well as the leader of the global stable isotope market. The Fuel Company is actively developing new businesses in chemistry, metallurgy, energy storage technologies, 3D printing, digital products and decommissioning of nuclear facilities. Rosatom’s industry integrators for additive technologies and energy storage systems have been created within the TVEL Fuel Company circuit.
Rusatom Metallurgical Technologies LLC is a divisional integrator of Rosatom Fuel Company TVEL in the Metalurgy business. The tasks of the Fuel Company’s metallurgical business development include, in particular, expansion of the client base in Russia and worldwide, development of production capacities, creation of new alliances and partnerships. Technological partners of Rusatom Metallurgical Technologies LLC are enterprises specializing in the production of products from refractory and light metals, as well as alloys based on them. The integrator consolidates competencies of TVEL JSC enterprises in the field of metallurgy: ChMP JSC (Chelyabinsk Metallurgical Plant), AO MSZ (Machinery Manufacturing Plant), PAO NZHK (Novosibirsk Chemical Concentrates Plant), Elemash Magnet LLC, OOO NPO Centrotech, AO VNIINM. The scientific potential, technological skills and qualified personnel of the enterprises make it possible to launch mass production of new materials and promising product lines, as well as to respond promptly to the needs of leading industries and high-tech companies.
Since 2020, Rosatom has been engaged in phased localization of production of permanent rare-earth magnets of the neodymium-iron-boron system in the Fuel Company. The first REM magnets produced by Elemash Magnet LLC (part of Rosatom Fuel Company TVEL) were supplied to Rosatom’s wind power division, NovaWind JSC, to be used for power generators at the Karmalinovskaya Wind Farm in the Stavropol Krai.
Nowadays, Russia has all the necessary resources to create a chain of REM magnet production. In particular, Rosatom State Corporation is competent in all key links, including: raw material extraction (projects of the Mining Division); research base (institutes of Science and Innovations JSC); and existing and future production facilities of the Fuel Company. Additionally, the vertical chain stability is ensured by cooperation with the leaders of the rare-metal industry, in particular, the Solikamsk Magnesium Plant.
The Russian industry faces the goal of ensuring technological sovereignty and transition to the latest technologies as soon as possible. The state and large domestic companies allocate resources to accelerated development of the domestic research, infrastructure and scientific and technological base. The introduction of innovations and new high-tech equipment enables Rosatom and its enterprises to occupy new niches in the market, increasing the competitiveness of the nuclear industry and the Russian industry as a whole.