Co2C nanoparticles (NPs) are amongst transition metal carbides whose magnetic properties have not been well explored. An earlier study (Roy et al 2021 J. Phys.: Condens. Matter
33 375804) showed that a pellet made from Co2C NPs exhibits exchange bias (EB) effect below a temperature, T
EB = 50 K and a spin glass (SG) feature emerges below T
SG = 5 K. In the current study we use magnetic, electrical transport, specific heat, and muon spin rotation (μSR) measurements to explore further the magnetic properties of a pellet made with 40 nm diameter pure Co2C NPs. We uncover the onset of Kondo localization at Kondo temperature T
K (= 40.1 K), which is close to the onset temperature (T
EB) of the EB effect. A crossover from the Kondo-screened scenario to the Ruderman–Kittel–Kasuya–Yosida interaction-dominated regime is also observed for T < T
K. Temperature-dependent specific heat measurement further supports the Kondo localization scenario in the pellet and shows the heavy fermionic nature of the strongly correlated electronic state in Co2C. The zero field μSR asymmetry spectra in the low-temperature regime are characterized by two distinct fast and slow relaxation rates. The spectra show the absence of long-range magnetic order in the sample. However, our analysis suggests the NPs-pellet shows the presence of a dominant magnetically disordered fraction and a smaller fraction with short-range order. Muons in the disordered fraction exhibit a slower relaxation rate, while muons in the smaller fraction with short-range order exhibit a faster relaxation rate. We observe an increase in this fast relaxation rate between T
EB and T
SG. This increase below T
EB ∼ 50 K suggests a slowing down of the fluctuating local magnetic environment around muons. Transverse field-μSR asymmetry spectra show the emergence of a stable, multi-peaked local magnetic field distribution in the pellet below T
EB. Longitudinal field μSR spectra shows distinct changes in the dynamics of fluctuations suggesting the presence of a frozen glassy like state below 6 K. Based on our results, we suggest that below T
EB, the pellet of Co2C NPs develops a magnetic interface that separates the two magnetic fractions; one is a disordered fraction, and the other is a fraction with short-range order. The exchange interaction that sets in below T
EB at the interface couples the two fractions, leading to a suppression of the fluctuations. With the suppression of magnetic fluctuations below T
EB, strong correlation effects in the electronic state of Co2C lead to Kondo localization.