Neo Performance Materials announced the opening of its Narva NdFeB magnet plant in Estonia.

The Narva NdFeB magnet facility was officially opened by Neo Performance Materials on 19 September, making it the first integrated (rare earth oxides to magnets) NdFeB magnet producer to commission capacity in Europe. The opening represents the start of commissioning at the facility, which is designed to produce sintered NdFeB magnets at commercial scale from 2026. Initial capacity is reported by Neo Performance Materials to be 2.0ktpy NdFeB magnets, though subsequent expansions will increase this to 5.0ktpy as part of the ‘Phase 1’ design.

Neo Performance Materials may also consider increasing this further under a Phase 2 expansion, though it has not committed to specifying the location of an additional 5-15ktpy NdFeB production capacity. In addition, Neo Performance Materials recently signed a partnership agreement with Robert Bosch, via a multi-year memorandum of understanding (MoU), reserving magnet materials produced at the Narva plant and Neo Performance Materials’ other production sites for Bosch.

The commissioning of the Narva facility is one of over 20 new magnet production facilities that have been recently commissioned or are under development with the aim to reduce global dependence upon Chinese magnet manufacturers of NdFeB magnets. Should all of these projects be successfully commissioned, the additional capacity would total greater than 58ktpy NdFeB by 2030, equivalent to 22.5% of global consumption in 2025. Most developers of new production facilities are targeting the production of high-performance magnet materials, with many highlighting the automotive industry as a key market.

As part of the commissioning ceremony, Neo Performance Materials also announced the addition of heavy rare earth separation capabilities at its existing Sillamäe facility in Estonia. Given the concerns surrounding future sourcing of heavy rare earth elements, several new magnet production facilities are targeting the production of low-zero HREE NdFeB alloy products. These will adopt specialised production methods, which are already widespread within the more established Chinese domestic market.

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