Rare earth processor and magnet manufacturer Neo Performance Materials signed an agreement to supply NdFeB magnets to a ‘tier 1’ electric motor manufacturer in Europe.

Neo Performance Materials (NPM) announced the signing of a supply agreement for sintered NdFeB magnet with a major European based electric motor manufacturer. The agreement would see NPM supply NdFeB magnets from a facility in Estonia which remains in construction during 2024, though scheduled for commissioning and production in late 2026. Capacity at the Estonia plant is targeted at 2.0ktpy NdFeB magnet block during its first phase of operation, of which the announced supply agreement with the European Motor manufacturers is reported to have already assigned roughly 700t (35%) of capacity in offtake.

The Estonia magnet production facility is targeted as being the first commercial scale producer of NdFeB magnet blocks for use in the automotive industry within Europe. While other NdFeB block manufacturers are operational in Europe, including Vacuumschmelze in Germany and Magneti in Slovenia, production at these facilities lack the scale or product types required by automotive electric drivetrain manufacturers. The focus on supplying magnets for use in automotive electric motors is expected to provide rapidly growing demand within the European market as manufacturers reduce reliance on Chinese suppliers and conform with the EU’s Critical Raw Materials Act set to be implemented by 2030.