A joint effort between the Estonian Ministry of Economic Affairs and Communications and Neo Performance Materials Inc. [NEO-TSX] has been launched to explore a possible expansion of Neo’s current production of advanced rare earth element (REE) products in Estonia, as well as to potentially launch new manufacturing of REE-based metals, alloys and magnetic materials for use in electric vehicles and other green technologies.
Andres Sutt, Minister of Entreprenuership and Information Technology, stated, “On behalf of the Ministry of Economic Affairs and Communications for Estonia, I would like to thank Neo Performance Materials for considering Estonia as its preferred location for expansion, as you are planning an investment to expand your production capacity of value-added rare earth products, including possibly establishing a new facility to make rare earth metals and magnetic materials, in Ida-Viru County.
“NPM Silmet has been a major contributor to the Estonian economy. Future investments of Neo as they have been introduced to us by your team would not only support the creation of new jobs and higher value-added products and introduce new green technologies in Estonia but also facilitate a stronger and more autonomous rare earths and magnets value chain in the EU. We are also pleased with Neo’s plans to incorporate material recycling and other environmentally beneficial processes in a new RE magnet manufacturing plant that it considers building, as this will help reduce life-cycle emissions and support a more circular economy in the EU. All of this is well aligned with EU’s and our national strategic perspective and objectives.
“We therefore hope that Estonia will serve as an appropriate location for any RE magnet production facility that you are currently considering, which can significantly strengthen Estonia’s and the EU’s ability to provide the strategic materials needed for greater production in Europe of electric vehicles, renewable energy, and other green technologies, such as high efficiency motors.”
Constantine Karayannopoulos, CEO of Neo Performance Materials, said, “I want to express my sincere gratitude to Minister Sutt and to the Estonian Government for its willingness to partner with Neo as we examine the potential to expand our existing rare earth separations capacities and possibly establish manufacturing capabilities to produce rare earth metals, alloys, and magnetic materials. Such an expansion would involve significant new investment by Neo in Estonia, and the economics of such an expansion are challenging in today’s market environment. But Neo very much looks forward to exploring potential partnerships with Estonia and European Union institutions that can help make any such expansion a reality.”
Neo’s advanced industrial materials – magnetic powders and magnets, specialty chemicals, metals, and alloys – are critical to the performance of many everyday products and emerging technologies. Neo is organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals. The company operates globally with sales and production across 10 countries, being Japan, China, Thailand, Estonia, Singapore, Germany, United Kingdom, Canada, United States, and South Korea.
By mid-day trading November 17, Neo’s shares gained $1.99 to $21.72 on a volume 226,300.