Neo Performance Materials has opened Europe’s first mass-scale production facility for rare-earth magnets as its chief executive predicted a three-fold increase in demand over the next decade, reports the Financial Times. Companies on the continent are scrambling to reduce its dependence on Chinese supply chains, and the Canadian group, which started production at its $75 million plant in Estonia on Friday, has signed initial contracts with German auto suppliers Schaeffler and Bosch.
China upended supply chains for minerals crucial to the energy transition when it imposed export controls in April, in retaliation for US President Donald Trump’s tariffs. Despite promises from Beijing to address the issue, European companies are still reporting renewed delays obtaining the export licences.
In an interview, Neo’s chief executive Rahim Suleman said the current demand for rare-earth magnets was “incredibly large.”