Neo Performance Materials Inc Friday announced that it has begun construction of a manufacturing facility in Estonia to produce rare earth permanent magnets.
The company said the magnets manufacturing facility in Narva, which is expected to produce components essential for electric vehicles and wind turbines, is near its existing rare earth separation plant in Sillamäe.
Neo noted that Phase 1 production of 2,000 tonnes per year is targeted to start in 2025, which the company claims will support the manufacturing of about 1.5 million electric cars, while its Phase 2 production of 5,000 tonnes per year can support the manufacturing of approximately 4.5 million electric cars.
Rare earth permanent magnets are used in a wide variety of technologies that increase energy efficiency and reduce carbon dioxide emissions, while also being integral to the drivetrains of the majority of electric vehicles manufactured, where they increase the power and efficiency of the motors, Reuters reported.
Shares of Neo Performance Materials eased 1.3% to $8.95 in early Friday trading and are down 9% to year to date.
Contact Sean at sean@proactiveinvestors.com