Canadian advanced‐materials firm Neo Performance Materials has secured its first large‐scale European contract, with its Narva, Estonia magnet plant set to supply sintered rare‐earth magnets to a leading European Tier‑1 EV traction motor manufacturer.
The contract covers approximately 35 percent of the facility’s first‑phase capacity, translating to around 700 tonnes of magnets annually. The deal is expected to generate roughly $50 million in revenue, with deliveries beginning mid‑2026 and spanning through 2033, peaking around 2029.
Located adjacent to Neo’s Sillamäe rare‐earth separation plant, the Narva facility began construction in 2023 and is slated for commissioning in 2025. In its initial phase, the plant will produce 2,000 tonnes per year, expandable to 5,000 tonnes as demand grows.
A recent shipment of 18,000 prototype magnet blocks—samples for performance testing—was dispatched earlier this year. These parts will undergo rigorous assessment by the Tier‑1 supplier and its OEM partner, with Production Part Approval Process (PPAP) expected by mid‑2026.
Neo’s CEO, Rahim Suleman, hailed the milestone as a commercial validation of the company’s European strategy to produce EV‐grade rare earth magnets outside of Asia. He praised the rapid pace of plant approval and construction, calling it “Europe at its best”.
Backed by EU Just Transition grants and financing from Export Development Canada, the Narva facility marks a significant step toward diversifying global magnet supply chains supporting Europe’s and North America’s EV industries amid wider push for secure, local sourcing.
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