https://www.miningweekly.com
Narva|Sillamäe|Neo Performance Metals|Estonia|Silmet|Critical Minerals|Equipment|Rare Earths|Renewable Energy|European Union
||||Equipment||
narva|sillame|neo-performance-metals|estonia|silmet|critical-minerals|equipment|rare-earths|renewable-energy|european-union

Neo secures €126m grant from EU Innovation Fund ahead of permanent magnet scale-up

Neo Performance Materials' magnet plant in Estonia

Neo Performance Materials' magnet plant in Estonia

20th October 2026

By: Marleny Arnoldi

Online News Editor

     

Font size: - +

TSX-listed permanent magnet producer Neo Performance Metals has secured an EU Innovation Fund grant for up to €126-million, or $141-million.

The funding will support an expanded rare earth magnet value chain in Estonia, spanning separation, metallisation and magnet manufacturing, adding up to 3 000 t/y of permanent magnet manufacturing capacity.

One-third of this capacity will be allocated to offshore wind farms in the EU.

Neo started commercial production at its permanent magnet plant in Estonia in September at a Phase 1A nameplate capacity of 2 000 t/y of neodymium-iron-boron permanent magnets, with the EU Innovation Fund support helping to enable a Phase 1B expansion to 5 000 t/y.

The expansion is already being designed, with detailed engineering, facility layout planning, advanced equipment procurement and supply chain planning currently underway. Neo estimates the expansion project to cost €400-million and to take between two and three years to complete.

Neo targets longer-term production expansions to 20 000 t/y of permanent magnets, which would represent between 10% and 15% of the world's projected rare earth permanent magnet market outside of China.

The company's current operations include the Silmet rare earths separation plant in Sillamäe and a sintered permanent magnet plant in Narva - which are about 30 km apart.

Edited by Creamer Media Reporter

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Columbus Stainless
Columbus Stainless

Columbus Stainless, based in Middelburg, Mpumalanga, is Africa’s only producer of stainless steel flat products. In addition, Columbus is the only...

VISIT SHOWROOM 
SafeQuip
SafeQuip

SafeQuip is a leading distributor and manufacturer of fire safety solutions, offering a comprehensive range of products designed to meet all...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

➕

➕

➕

➕

➕

RESEARCH CHANNEL AFRICA

SUBSCRIBE

➕

➕

➕

➕

➕

➕

➕

➕

➕

➕

CORPORATE PACKAGES

CLICK FOR A QUOTATION

➕

➕







sq:0.051 0.07s - 116pq - 2rq
Subscribe Now