A French company, MagREEsource, is reinforcing its position within the industrial sector by enhancing its efforts in producing permanent magnets using sustainable methods. With recent geopolitical tensions affecting the magnet supply chain, MagREEsource aims to address these challenges by bolstering Europe’s independent production capabilities. Leveraging financial backing, the company intends to scale its capacity for producing key materials essential for renewable energy and various high-tech industries.
Founded in 2020 by Sophie Rivoirard and Erick Petit as a spin-off from CNRS/Institut Néel in Grenoble, MagREEsource has strategically aimed to produce magnets sustainably. Contrasting earlier efforts, the company is focusing on reducing reliance on imports, particularly in light of China’s dominance in the magnet industry. They intended to cause a ripple by emphasizing innovation in both technology and economy, responding to the urgency displayed within the Critical Raw Materials Act announced in late 2024.
What Are the Implications of the New Funding?
The recent injection of €23 million, led by Fonds SPI 2 and other notable backers including FININDUS and BNP Paribas Développement, is designated to enhance MagREEsource’s overall capabilities. These funds will be channelled into advancing their circular process technology, specifically the short Fusion loop, and planning the construction of MagFactory by 2028. MagFactory is aimed to reach a production capacity of 1,000 tonnes annually, a project classified as a ‘European Strategic Project.’
Magali Joëssel, Director of the SPI Fund at Bpifrance, stated,
“The process developed by MagREEsource is both efficient and environmentally friendly, paving the way for a new industrial sector rooted in the region.”
The clear vision is to create a manufacturing blueprint that can independently sustain the European market.
Why Is MagREEsource’s Approach Significant?
The novelty of MagREEsource’s process, which focuses on the circular economy, is capturing significant attention. By tapping into patented clean-tech processes, the company capitalizes on recycled rare earths, significantly reducing carbon emissions associated with traditional production methods. This strategy is critical as Europe’s industries, including wind power, aeronautics, robotics, and defense, demand sustainable alternatives.
Erick Petit, co-founder of MagREEsource, emphasized the societal implications:
“MagREEsource demonstrates that technology and the circular economy can address sovereignty issues.”
The ambition is not only cost-effective manufacturing but employment generation within the region.
MagREEsource operates with a substantial focus on research and development, deploying a third of its 50 employees in this area. This strategic investment in innovation ensures that the company can continually address the fast-paced demands and developments within the permanent magnet industry.
In evaluating the progress of MagREEsource, their significant gains in reshoring production capacity are apparent. Their efforts mirror a broader European industry push toward self-reliance and the securing of essential supplies amid fluctuating global dynamics. While their approach marks a shift from intensive resource use to recycling and efficient use, the challenge remains in scaling this efficient model network-wide.
MagREEsource’s funding and existing technologies highlight key advancements that stress the importance of addressing both economic and environmental perspectives. As the company continues its strategic expansion and bolstering of local industries, it remains imperative to observe how such frameworks can be replicated in other sectors or regions, catalyzing further advancements in technology-driven sustainability.
