Neo Performance Materials has begun commercial production at its magnet plant in Narva, Estonia. According to Neo, initial shipments of sintered rare earth magnets have been delivered to a supplier of electric vehicle drive motors. Previously, the company had provided only samples for testing. Production for other contracts already awarded is expected to begin by the end of 2026.
The magnet plant opened in September 2025. Its first phase is designed to produce around 2,000 metric tons of magnets annually. Neo did not disclose its current output. An expansion to around 5,000 metric tons per year is being planned.
Near the magnet plant, Neo already operates a light rare earth refinery in Sillamäe. In April, the company also commissioned a line to separate heavy rare earths, including dysprosium and terbium.
Neo’s facilities in Estonia contribute to the development of a European rare earth supply chain. To that end, the Canadian company is working with partners including French rare earth processor and recycler Carester.
Photo: iStock/xiao zhou
