Neo breaks ground on European mfg. plant to support EV and wind turbine industry
by CM staff
The plant will support circular economics by recycling end-of-life magnets and recovering magnet 'swarf' created in the manufacturing process.
Participating in the ceremonial groundbreaking, left to right, were: Raivo Vasnu, NPM Silmet Managing Director; Maive Rute, Deputy Director General of the European Commission; Rahim Suleman, Neo President; Claire Kennedy, Chair of the Board of Neo; Constantine Karayannopoulos, Neo’s Chief Executive Officer; Tiit Risalo, Estonian Minister of the Economy; Madis Kallas, Estonian Minister of Regional Affairs; Charles Lew, Executive Chairman of Hastings Technology Metals; Greg Kroll, Neo Executive Vice President and head of the company’s Magnequench business unit; Greg Heydon, Managing Director, Magnequench (Estonia) NPM Narva OU; and Vivian Loonela, EU Ambassador to Estonia. (Photo: CNW Group/Neo Performance Materials, Inc.)
TORONTO — Neo Magnequench, a division of Neo Performance Materials Inc., has launched construction of the first rare earth magnet manufacturing facility in Europe designed to produce specialized rare earth permanent magnets for use in electric vehicles, wind turbines, and other clean energy technologies.
Neo Magnequench officials recently broke ground on the facility in Narva, Estonia, which is located near Neo Performance Material’s existing rare earth separations plant in Sillamäe, Estonia. In Sillamäe, Neo takes in rare earth feedstock from a variety of sources around the world – including the United States – and produces the high-purity magnetic rare earth oxides that will be converted in Magnequench’s new plant into sintered neodymium-iron-boron magnets. Such an integrated supply chain for sintered rare earth permanent magnets does not exist in Europe at present.
The event included speeches from notable officials from Estonia, including Narva Mayor Katri Raik, Estonian President Alar Karis, Estonian Investment Agency Director Joonas Vänto, Minister of Economic Affairs Tiit Riisalo, Minister of Regional Affairs Madis Kallas, Also participating were European Union representatives including Deputy Director General of EU Commission’s DG GROW Maive Rute and European Commission President Ursula von der Leyen. Also attending the event were ambassadors and embassy staff from multiple countries with commercial interests in Neo’s operations in Estonia, such as Canada, the United States, Germany, and France.
The Neo Magnequench permanent rare earth magnet manufacturing facility has been championed over the past two years by Neo CEO Constantine Karayannopoulos.
“We are proud to be the anchoring investment that will help Estonia become a hub for critical raw material supply chains for technologies that are necessary for Europe’stransition to electromobility and energy security from renewable sources,” said Karayannopoulos. “This value chain approach to investment attraction and industrial ecosystem development is a bold vision which is supported by the high competency and speed-to-execution of European Commission, Estonian and municipal government leaders. With the support of the European Union’s Just Transition Fund, our company is de-risking rare earth supply chains in Europeand globally, which in turn de-risks the million jobs in the transition from the internal combustion engine to electric vehicles in Europe and the production of wind turbines for Europe’s energy security.”
Sintered rare earth permanent magnets are used in a wide variety of technologies that increase energy efficiency, reduce carbon dioxide emissions, and help enable the European Union’s efforts to achieve carbon neutrality. These magnets are especially integral to the drivetrains of the majority of electric vehicles manufactured today, where they increase the power and efficiency of the motors. Other rare earth magnets made by Neo are used in electric motors in battery electric, hybrid electric, and conventional vehicles, as well as in electronics, water circulation pumps, high-efficiency home appliances, and many high-efficiency industrial applications.
Neo Magnequench currently plans to launch Phase 1 production in 2025, with a goal of producing approximately 2,000 tonnes/year of rare earth magnet block. Commercial discussions with customers of these magnets indicate demand in excess of Neo’s Phase 1 plants, and the Company is likely to expand to a Phase 2 production rate of 5,000 tonnes/year in the near future.
