Neo Has Begun Commercial Production At The Magnetic Material Factory in Estonia.

London, September 14th (Argus) - Neo Performance Materials, headquartered in Toronto, announced on Monday that it has begun commercial production at its permanent magnet manufacturing facility in Estonia.
Neo has delivered the first batch of commercial quantities to customers of electric vehicle traction motors. The company expects to start commercial production for two to three customer projects by the end of 2026.
Neo's Estonian permanent magnet facility was launched in September 2025 and has the capacity to produce 2,000 tons per year. The second phase will increase the production capacity to approximately 5,000 tons per year, and is currently in the design stage.
In the long term, Neo's goal is to produce 20,000 tons of permanent magnets globally annually. This will meet the projected 10% to 15% demand for magnetic materials in regions outside of China. The company's current secure customers are all first-tier motor manufacturers, but Neo aims to expand to provide magnetic materials for industrial, robotics, and clean energy applications.
Neo signed a purchase agreement with French rare earth processing and technology company Carester on September 2nd. As part of this agreement, Carester will supply Neo's European magnetic material factory with separated dysprosium and terbium oxides to provide some necessary raw materials.