Neo Performance Materials Inc. has secured a major supply contract to provide permanent rare earth magnets for a new electric vehicle (EV) traction motor platform developed by a leading European Tier 1 supplier for a global OEM. This marks the addition of both the Tier 1 and OEM to Neo’s expanding automotive customer portfolio, further solidifying its position as a trusted magnet supplier in the EV sector. The magnets will be manufactured at Neo’s new facility in Narva, Estonia, which is already producing and shipping qualification samples to meet existing automotive commitments. The new contract is projected to generate approximately $50 million in revenue over its duration, with commercial deliveries expected to begin in mid-2026.
Neo’s Narva facility is the first sintered rare earth magnet plant outside of Asia specifically designed to serve European and North American markets across electric mobility, industrial tooling, and offshore wind sectors. The plant has already secured multiple awards for traction motor magnets, one of the most technically demanding applications in the magnet industry. 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 recognizing us in return.”
