To supply permanent rare earth magnets for a new electric vehicle (EV) traction motor platform created by a top European Tier 1 supplier for a global OEM, Neo Performance Materials Inc. has won a significant supply contract. Neo’s reputation as a reliable magnet provider in the EV industry is further cemented with the addition of both the Tier 1 and OEM to its growing automotive customer portfolio. Neo’s new plant in Narva, Estonia, which is now manufacturing and shipping qualifying samples to fulfil current automotive commitments, will be used to manufacture the magnets. Commercial deliveries are anticipated to start in mid-2026, and the new contract is likely to bring in about $50 million during its term.
The first sintered rare earth magnet production outside of Asia, Neo’s Narva facility is intended to cater to the offshore wind, industrial tooling, and electric mobility markets in North America and Europe. The plant has already earned many honours for traction motor magnets, one of the most technically demanding applications in the magnet business. Rahim Suleman, President and CEO, said, “We welcome yet another commercial recognition from a new customer.” “What the team has accomplished in this new European rare earth permanent magnet facility is remarkable.” “The Neo team successfully built this magnet plant in just 500 days and is responding to growing demand from automotive customers with a sense of urgency while staying grounded in our principles of responsible ramp-up curves for new plants.” “We are here for our customers, and we are proud that they are recognising us in return.”