Canada's Neo Performance Materials starts commercial production of rare earth magnets in Europe
TSX-listed Neo Performance Materials has started commercial production at its European permanent magnet manufacturing facility, in Estonia, with first volumes of rare earth sintered magnets having been shipped to an electric vehicle traction motor customer.
These milestones mark Neo's transition from development and sampling through full automotive qualification and into commercial production for its initial magnet programmes.
Neo has been awarded multiple magnet programmes from three Tier 1 motor manufacturers, including traction motor applications, which is the most technically demanding category of permanent magnets.
The company expects two to three more magnet programmes to enter commercial production before the end of the year.
Automotive magnet programmes are typically awarded for the life of the vehicle platform they supply, which gives Neo multi-year volume visibility once a programme is awarded.
Phase 1A of the Estonian permanent magnet facility has a nameplate capacity of 2000 t/y while Phase 1B is planned to expand nameplate capacity to about 5000 t/y. The expansion is currently being designed, with detailed engineering, advanced equipment procurement, supply chain planning and facility layout currently underway.
Neo's longer-term magnet roadmap targets yearly production of 20000 t through continued global expansion, which the company estimates could represent between 10% and 15% of the world's projected rare earth permanent magnet market outside of China.
