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 has committed 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.
Media contacts
Håvard Moe – CEO
Phone: +47 952 91 429
Email: haavard.moe@rareearthsnorway.com
Alf Reistad – Deputy Managing Director
Phone: +47 941 70 003
Email: alf.reistad@rareearthsnorway.com
Tor Espen Simonsen – Communications adviser
Phone: +47 958 03 065
Email: tes@rareearthsnorway.com
About Rare Earths Norway
Rare Earths Norway REN has documented Europe’s largest REE deposit at the Fen Complex in Telemark, Norway, and aims to diversified European supply of rare earths for permanent magnets.
REN is supported by the European Raw Materials Alliance (ERMA), EIT RawMaterials, the Research Council of Norway, Innovation Norway, the Telemark Development Fund and the Vestfold and Telemark Regional Research Fund.
The company works closely with partners across several countries to develop new technologies for efficient, safe and low-emission underground mining at the Fen Complex. It will also build a dedicated pilot plant for processing rare earth elements from the deposit.
The company aims to begin extracting rare earth elements from the Fen Complex in the early 2030s.
About Innovation Norway
Innovation Norway is the Norwegian government’s and county authorities’ instrument for promoting value-creating business development across the country. The organisation works to foster innovation in the business sector, sustainable growth and exports among competitive Norwegian companies, as well as economic development in rural areas.
Through financing, advisory services, expertise and networks, Innovation Norway helps companies develop new solutions, grow and succeed in international markets. Innovation Norway also helps reduce risk and unlock private capital, enabling promising projects that might otherwise not be realised.
Innovation Norway has offices throughout Norway and 25 international offices across 21 countries.
About EIT RawMaterials
EIT RawMaterials is the largest and most active raw materials knowledge and innovation network globally, comprising over 300 partner organisations across the entire raw materials value chain. EIT RawMaterials demonstrates its dedication to advancing and supporting a circular economy in Europe by fostering innovation, collaboration, and sustainable practices. Mandated by the European Commission, EIT RawMaterials leads the European Raw Materials Alliance (ERMA), which includes 800 members representing an investment potential of more than €25 billion.
Since its founding, EIT RawMaterials has deployed over €700 million in direct strategic funding to support more than 800 projects and start-ups, leveraging approximately €8.3 billion in additional investment into critical raw materials projects and technologies across Europe and beyond.
Supported by the European Institute of Innovation and Technology (EIT), a body of the European Union, EIT RawMaterials was established in 2015 to advance Europe’s transition to a sustainable economy. Its mission is to secure a sustainable supply of raw materials for Europe, close material loops, and design innovative product solutions, with the goal to position raw materials as a strategic strength for Europe through innovation, education, and entrepreneurship. Learn more at www.eitrawmaterials.eu.
About Telemark Development Fund
The Telemark Development Fund manages revenues generated from concessionary hydropower agreements and supports development initiatives that create jobs, foster innovation, and promote sustainable growth across the Telemark region.