Neo Performance Materials Started Estonia Magnet Output
The manufacturer of permanent magnets has begun commercial production in Estonia to diversify its supply chain away from China.
Updated on Sept. 23, 2026 in Manufacturing
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Neo Performance Materials commenced commercial production at its Estonia magnet plant in September 2026. The facility aims to bolster Europe’s non-China rare earth magnet supply chain.
Why it matters
By establishing production in Estonia and securing a raw material offtake agreement with France-based Carester, the company aims to reduce reliance on the Chinese market for essential EV components. This move highlights a broader trend among manufacturers seeking to insulate their production lines from concentrated geographic supply risks.
The Estonia plant currently has a capacity of 2,000 t/y, with plans for a Phase 2 expansion to 5,000 t/y. Neo Performance Materials holds a long-term global target of 20,000 t/y to meet non-China demand.
The players
Neo Performance Materials
A Toronto-based manufacturer of rare earth materials and permanent magnets serving the EV and industrial sectors.
Carester
A French supplier specializing in the separation and supply of rare earth oxides for magnet manufacturing.
The details
The facility uses raw materials, including separated dysprosium and terbium oxides, supplied by Carester to manufacture permanent magnets for EV traction motors. Neo Performance Materials has successfully delivered its first batch of products to a customer, marking the operational start of the site. The company plans to eventually extend the plant's output into robotics, clean energy, and other industrial applications.
Timeline
September 2025: The Estonia magnet plant was commissioned.
September 2, 2026: The company signed an offtake agreement with Carester.
September 2026: Commercial production commenced at the Estonia facility.
Market Landscape
This move follows the documented industry trend of manufacturers working to decouple their rare earth supply chains from China. It specifically extends efforts to build domestic capacity in Europe to serve the local electric vehicle and industrial robotics sectors.
Operators in the EV and clean energy space should track the availability of locally sourced magnets as Neo scales toward its 20,000 t/y global target. Consider whether your current procurement strategy relies on high-risk geographic hubs for rare earth elements.
The takeaway
Securing regional supply chains for rare earth components is becoming a critical competitive advantage for manufacturers. Monitor the production ramp-up at the Estonia site to gauge how quickly localized supply can stabilize costs for permanent magnets.
Further reading
For more on the changing landscape of industrial production, see our coverage in Manufacturing.
Source note: This article includes information reported by Metal.
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