Neo Performance Materials Secures Full Funding for Estonia Magnet Plant

Neo Performance Materials

Neo Performance Materials, a global leader in advanced materials for clean technology, has secured the remaining funding to complete the construction of its rare earth permanent magnet production facility in Narva, Estonia. The Toronto-based company entered into a loan agreement with the Canadian government, securing up to $50 million to finish the $75 million project. This follows an earlier $20 million grant from the European Union’s Just Transition Fund, as well as $24.9 million already invested in the facility.

A Key Development in Rare Earth Magnet Production

The new plant is expected to play a pivotal role in Neo’s goal to strengthen its vertical integration strategy, aiming to move from "mine to magnet." Located near Neo’s Silmet light rare earth separation plant, the Narva facility will have the capacity to produce 2,000 metric tonnes per year of sintered rare earth permanent magnets by 2025. These magnets are crucial components for electric vehicle (EV) motors, wind turbines, and other clean energy applications.

The rare earth permanent magnet industry is highly concentrated in China, which dominated 87% of global exports in 2024. Neo’s Estonia plant will help diversify the supply chain and reduce reliance on Chinese production, which is vital as demand for clean energy technologies continues to rise globally.

Strategic Importance for Neo

The strategic location of the Narva facility near Neo’s Silmet plant will enable the company to secure a steady supply of feedstock, which is essential for high-quality magnet production. With the funding now fully secured, Neo is on track to complete the first phase of construction by 2025, marking a significant milestone in the company’s growth within the rare earth and magnet manufacturing sector.