The new RARA Factory laboratory has officially opened in Venice. It is Italy’s first company solely focused on researching, developing, and prototyping sustainable materials to substitute rare earths and other critical substances. The launch event took place at the VEnice GAteway for Science and Technology, where the facility is located. Attendees included regional and municipal officials, universities, companies, investors, and strategic partners.
Founded as a deep-tech spinoff of Ca’ Foscari University of Venice, RARA Factory develops advanced technologies aimed at reducing reliance on rare earths and critical materials—key elements that are essential for the energy transition, electric mobility, aerospace, and high-tech medical devices.
At the core of RARA Factory’s technology is a patented algorithm that can identify alternative materials to rare earths by combining elements readily found in nature, while maintaining equal or better properties than traditional alloys. Thanks to a combination of expertise—from condensed matter physics to theoretical physics and generative artificial intelligence—the algorithm has been successfully tested on over 45,000 materials, demonstrating its potential to revolutionise the sourcing of critical raw materials in strategic sectors.
“We’re going after abundance: large quantities of easily available elements such as silicon, aluminium, iron and calcium,” said Stefano Bonetti, founder and scientific director of RARA Factory, and Professor of Experimental Condensed Matter Physics at Ca’ Foscari. “Our first goal is to find alternative magnets to those made with neodymium, for use in the automotive and renewable energy sectors. However, our method has a much wider reach, and can be applied to any critical material we aim to replace – such as lithium, coltan or cobalt.”
According to the European Union’s Critical Raw Materials Act, approved in 2023, Europe currently imports 98% of its rare earths from China, a strategic vulnerability that risks slowing down the green transition and undermining industrial competitiveness. Rare earths are indispensable for batteries and electric motors, wind turbines, advanced electronic components, high-precision biomedical instruments and aerospace applications. In the magnet sector alone, which is valued today at USD 54 billion globally and expected to exceed USD 90 billion by 2030, RARA Factory’s technology aims to achieve material cost savings of 30–40%.
The new laboratory is equipped with advanced computing systems for designing new materials using a proprietary AI model, as well as tools for synthesising new alloys and facilities for measuring the magnetic, thermal and optical properties of the materials produced. It is capable of generating around 150 samples per day and over 10,000 by the end of the year.
Michele Bugliesi, co-founder and CEO of RARA Factory, Professor of Computer Science and former Rector of Ca’ Foscari, commented: “With RARA Factory, our aim is to demonstrate that it is possible to generate not only scientific impact but also industrial and social value, leveraging Italian academic excellence. We intend to establish a comprehensive value chain by collaborating with top industrial, institutional, and financial partners, thereby fostering a competitive ecosystem that links research, business, and local communities. We have already achieved the first milestone: RARA Factory is now fully operational, with about ten team members, over €2 million in equipment, a patented algorithm, and the interest of several investors who immediately saw the project’s great potential. Our next goal is to expand further, supported by national and regional stakeholders.”
Enrico Dente, Director of Motor Valley Accelerator and Plug and Play, added: “We are proud to support RARA Factory, a company that demonstrates how scientific innovation can translate into tangible industrial impact. Their approach, which combines materials science and artificial intelligence, has the potential to redefine entire industrial supply chains and offers a strategic response to the dependence on rare earths and the challenges of the energy transition. As Motor Valley Accelerator and Plug and Play, we strongly believe in their vision and are excited to accompany them on their growth.”
Francesco Iannella, Regional Manager for North-East Italy at UniCredit, commented: “Unicredit’s support for the RARA Factory project exemplifies our approach in a region like the North-East. It shows our solid commitment to backing ambitious and sustainable entrepreneurial ventures; at the same time, it continues our long-standing and pioneering support for the innovation ecosystem, developed over the years through the UniCredit StartLab initiative. Additionally, it aligns with our efforts, via the UniCredit Foundation’s so-called ‘re-entry fellowships’, to attract and retain the best talent.”