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What's clever about this technique is Step 1, first tying the loose roving into a knot. This gives the ball a firm center right off the bat. Next the 'tails' are simply needle felted to the center knot.
The difference between Steps 2 and 3 is
the continual needle felting: poking the ball until it is round, solid,
and the desired size. Judging from the size of the above felting needle,
I'm guessing the roving ball in Step 3 is about the size of your thumb
nail.
The above technique is great for the addition of wool beads to whimsical jewelry creations. Or how about a unique fringe on that one-of-a-kind scarf?
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Happy knitting!