Neo Performance Materials Inc. has won a major supply contract for rare earth permanent magnets with a new European Tier 1 supplier of EV traction motors and a leading automotive OEM. The agreement marks a significant expansion in Neo’s automotive customer base and is projected to generate approximately $50 million in cumulative revenue over the project’s life.
The magnets will be manufactured at Neo’s newly built sintered magnet facility in Narva, Estonia—Europe’s first of its kind outside Asia. Already in production and shipping qualification samples, the facility is set to begin commercial deliveries by mid-2026. This latest contract reinforces Neo’s position as a preferred magnet supplier for advanced automotive applications, particularly EV traction motors that demand high power and heat resilience.
“This recognition from a new customer is a testament to what our team has accomplished,” said Rahim Suleman, President and CEO of Neo. “Building this advanced facility in just 500 days shows our urgency to meet customer needs while ensuring responsible scaling.”
The Narva plant, co-funded by the European Union’s Just Transition Fund, is currently capable of producing 2,000 tonnes of magnets annually, with plans to expand to 5,000 tonnes in Phase 2. The official plant inauguration is scheduled for September.
Neo, a longstanding player in the automotive and industrial motor sectors, continues to lead in sustainable magnet innovation. Its development of heavy-rare-earth-free magnetic powders used in modern NEV motors underscores its role in advancing clean mobility technologies.
