New Estonian magnet factory to power 1 million EVs annually

Auto Sep 19, 2025

Neo Performance Materials just launched a $75 million magnet factory in Narva, Estonia, aiming to power up to one million electric vehicles (EVs) each year.
The new plant will make neodymium magnets—key parts for EV motors—helping Europe rely less on imports and keep up with the growing demand for clean transportation.

Expansion plans in the pipeline

This move comes after China tightened rare earth exports in April, which shook up companies worldwide.
Neo's new facility will use raw materials from Australia and has already landed contracts worth up to $100 million, with major shipments set for 2026.
Looking ahead, Neo plans to begin expansion to triple production in 2027 as Europe pushes toward greener vehicles and phases out new gas-powered cars by 2035.