Neo Performance opens magnet facility in Estonia

Executive Summary

• Neo Performance Materials Inc. officially inaugurated its new, state-of-the-art permanent magnet manufacturing facility in Narva, Estonia, marking a significant expansion of its European footprint to supply critical rare earth magnets for electric vehicles, wind energy, and robotics.
• The facility, completed in 500 days and co-funded by the European Union's Just Transition Fund, is already producing and shipping qualification sample magnets to meet contract obligations for automotive platforms and has secured contracts for traction motor magnets.
• Neo announced a strategic partnership extension with Robert Bosch GmbH on Sept. 19, 2025, reserving annual magnet production capacity to ensure a stable supply chain, while the facility aims to satisfy up to 15% of the EU's demand for these magnets.

Key Details

• Facility Location & Status: New permanent magnet manufacturing facility in Narva, Estonia; formally inaugurated after being operational since May.
• Production Capacity: Projected to produce 2,000 metric tonnes per year of magnets in Phase 1A, with plans to scale to over 5,000 metric tonnes per year in Phase 1B.
• Current Operations: Already producing and shipping qualification sample magnets; secured contracts for traction motor magnets (the most technically demanding product category) and expanded offerings to non-traction-motor applications.
• Strategic Partnership: On Sept. 19, 2025, Neo announced an extension of its strategic partnership with Robert Bosch GmbH via a multiyear memorandum of understanding, reserving annual magnet production capacity for Bosch.
• Investment & Funding: Co-funded by the European Union's Just Transition Fund.
• Educational & Local Development: Established cooperation agreements with:
  • University of Tartu's youth academy (sponsoring training for international Olympiads in math, physics, and chemistry).
  • Tallinn University of Technology (collaborating on rare earth chemistry and digitalization of manufacturing programs).
  • Robotex (supporting Estonia's premier robotics competition).
• Government & Industry Support: Inauguration attended by over 270 guests including senior leadership from automotive, renewable energy, and technology sectors, alongside government officials. Quotes provided by Estonian Prime Minister Kristen Michal, European Commission President Ursula von der Leyen, and Executive Vice-President Raffaele Fitto.
• Company Background: Neo has a global platform with manufacturing facilities in China, Germany, Canada, Estonia, Thailand, and the UK, plus an R&D center in Singapore.

Notable Quotes

• Kristen Michal, Prime Minister of Estonia: "In Narva, we are opening not only a factory, but also a new chapter in Europe's industrial future. I want to thank Neo Performance Materials and its partners."
• Ursula von der Leyen, President of the European Commission: "Operational since May and formally inaugurated yesterday, this magnet manufacturing facility is a milestone truly worth celebrating. The future will be made in Europe. Neo Performance Materials and Narva are proof of this."
• Raffaele Fitto, Executive Vice-President of the European Commission: "Magnets are crucial for Europe's future. They power electric vehicles, wind turbines and microelectronics. Now, Neo's first facility in Narva will satisfy up to 15 per cent of the EU's demand for these magnets."
• Rahim Suleman, President and CEO of Neo Performance Materials: "Today marks a historic milestone for Neo and a pivotal moment for the global rare earth industry. This facility is built on Neo's three decades of experience in magnetic materials and demonstrates our unwavering commitment to our customers in the electric vehicle and wind energy sectors."