Supply chain synergies: The operator, Neo Performance Materials, is already active in the region with a rare earth refinery. The new magnet plant is backed by financial support from both Canada and the EU.
Today, Friday, the largest rare earth magnet factory in Europe was officially inaugurated in Narva, northeastern Estonia. The facility is run by Canadian company Neo Performance Materials. Just a 30-minute drive away, in Sillamäe, Neo already operates a refinery for light rare earths; a second facility for heavy rare earths may follow.
For decades, both the processing of rare earths and the production of permanent magnets have been heavily concentrated in China. With the new Narva plant, Europe aims to strengthen its strategic autonomy and competitiveness significantly, according to the European Commission. The EU supported construction with €14.5 million from its Just Transition Fund, designed to facilitate the shift toward a climate-neutral economy. In addition, Canada’s export credit agency provided loans worth the equivalent of €45 million.
“This is the most important critical materials project happening in Europe today,” said Neo CEO Rahim Suleman in an interview ahead of the inauguration.
Neo first discussed the idea of building such a plant with the Estonian government in late 2021, as part of broader efforts to reduce Europe’s dependence on Chinese imports. The raw materials used will come in part from Brazil.
Meanwhile, German conglomerate Bosch has secured a share of the plant’s magnet production capacity. At the same time as the inauguration, Neo announced the signing of a multi-year memorandum of understanding with Bosch.
Photo: Neo Performance Materials