Neo Performance Materials to receive European grant for rare earth magnet manufacturing plant
by CM Staff
Receipt of the government grant award is a milestone for Neo as it progresses toward an expected 2023 construction launch of the planned magnet plant.
TORONTO — Neo Performance Materials Inc. announces that it has been awarded a grant of up to 18.7 million Euros from the Government of Estonia under Europe’s Just Transition Fund program to help pay for the cost of constructing a sintered rare earth permanent magnet manufacturing facility in Estonia.
Receipt of the government grant award is a milestone for Neo as it progresses toward an expected 2023 construction launch of the planned magnet plant in Ida Viru County in Estonia. Neo anticipates onset of manufacturing operations in 2025. The European magnet plant is a key component of Neo’s rapidly advancing “Magnets-to-Mine” vertical integration strategy.
In announcing the award to Neo, Estonia’s Prime Minister Kaja Kallas said: “Estonia is known for our secure and transparent business environment as well as e-solutions, which all support the ease of doing business. We are pleased that Neo Performance Materials has chosen Estonia as its new production and R&D base for its strategic growth areas. This also contributes to supporting the green energy transition in Europe.”
Estonia’s Minister of Entrepreneurship and Information Technology, Kristjan Järvan, added: “Rare earth magnets are a key component in renewable energy technology, electric vehicles, data carriers, consumer electronics, medical devices and robotics. The need to transition to a carbon-neutral economy predicts high demand for such magnets. Today, European Union is missing a sustainable, resilient rare earth magnet supply chain to supply European and North American OEMs for electric vehicle motors. With its new factory, Neo Performance Materials creates unique new capabilities in Europe and thereby strengthens the supply chains and also our economy.”
The grant of up to 18.7 million Euro to Neo is based upon up to 100 million Euro in project costs, as well as other factors such as the number of new jobs created.
Once in operation, Neo’s planned magnet manufacturing facility will allow the Company to offer unprecedented Magnets-to-Mine optionality to its European and North American customers.
The first phase of Neo’s planned magnet plant hopes to produce approximately 2,000 tonnes/year of sintered rare earth permanent magnet block.
