Canadian rare-earth materials producer Neo Performance Materials has started commercial production at its permanent magnet plant in Narva and is shipping rare-earth sintered magnets to a Tier 1 maker of electric-vehicle traction motors.
The milestone moves the Estonian plant from sampling and automotive qualification into series supply, Neo said. It comes a year after the factory opened in September 2025. Neo built it in under two years.
Three Tier 1 customers in the pipeline
Neo has been awarded multiple magnet programmes by three Tier 1 motor manufacturers, including traction-motor magnets, the most technically demanding category of permanent magnets.
Qualification samples have been delivered for each programme. The first is now in commercial production, and two to three programmes are expected to reach that stage before the end of 2026, with further traction-motor and accessory magnet programmes due to launch later this year.
Automotive magnet programmes are typically awarded for the life of the vehicle platform they supply, providing Neo with multi-year volume visibility. The company is also in active talks with customers in industrial, robotics and clean-energy applications.
“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 CEO of Neo Performance Materials. “This achievement reflects three decades of magnetics expertise and the hard work of our teams across Neo, particularly in Estonia and Singapore.”
Narva capacity set to more than double
The plant’s first phase, Phase 1A, has a nameplate capacity of about 2,000 tonnes of magnets a year. Neo is designing Phase 1B, which would lift capacity to about 5,000 tonnes, with detailed engineering, procurement of advanced equipment, supply chain planning, and facility layout underway. The current plant is expected to reach full capacity at the end of 2028, writes Postimees.
Narva is the first step in a wider roadmap. The company targets 20,000 tonnes of annual magnet production through global expansion, which it estimates could represent 10% to 15% of the projected rare-earth permanent magnet market outside China.
The Narva plant works alongside a rare-earth separation facility in nearby Sillamäe, where a heavy rare-earth separation unit was being installed when the magnet plant opened, according to the opening announcement.
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