Neo Performance Materials Inc. has advanced its European permanent magnet manufacturing facility in Estonia into commercial production, delivering first commercial volumes of rare earth sintered magnets to a Tier 1 electric vehicle traction motor customer.

The milestone marks a transition from development and sampling through full automotive qualification. Phase 1A of the Estonian facility provides a nameplate capacity of approximately 2,000 metric tonnes per year. To support further output, Neo is conducting detailed engineering, advanced equipment procurement, supply chain planning, and facility layout for Phase 1B, which is designed to expand nameplate capacity to approximately 5,000 metric tonnes per year.

The company has secured multiple magnet programs from three Tier 1 motor manufacturers, including traction motor applications. Two to three additional customer programs are expected to enter commercial production before the end of 2026.

To support feedstock requirements at the facility, Neo entered into a binding partnership with Carester SAS in August 2026 to secure heavy rare earth oxides, including separated dysprosium and terbium oxides from Carester's Lacq facility in France.

“Advancing to commercial magnet production at our European permanent magnet facility is a defining milestone for Neo and demonstrates our ability to consistently deliver on our commitments to our customers and the market,” said Rahim Suleman, President and Chief Executive Officer. “This achievement reflects three decades of magnetics expertise and the hard work of our teams across Neo, particularly in Estonia and Singapore. We built this facility in under two years and have won multiple program awards from Tier 1 motor manufacturers. Having now achieved commercial production, I want to thank our customers for their trust and partnership throughout the ramp-up, and our supplier partners for their support along the way.”

— Rahim Suleman, President and Chief Executive Officer

Read the full announcement: Neo Performance Materials Advances to Commercial Production at its European Magnet Facility