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Delivering first commercial volumes of sintered magnets to a Tier 1 traction motor customer
Neo Performance Materials Inc. ("Neo" or the "Company") (TSX: NEO,OTC:NOPMF) (OTCQX: NOPMF) today announced that its European permanent magnet manufacturing facility is in commercial production and shipping volumes of rare earth sintered magnets to a Tier 1 electric vehicle ("EV") traction motor customer. This milestone marks Neo's transition from development and sampling, through full automotive qualification and into commercial production for its initial magnet programs. Additional programs, including further traction motor and accessory magnet programs, are also expected to launch later this year.
Highlights
- Neo's European permanent magnet manufacturing facility in Estonia is in commercial production, with first commercial volumes delivered to a Tier 1 EV traction motor customer.
- Neo has been awarded multiple magnet programs from three Tier 1 motor manufacturers, including traction motor applications, the most technically demanding category of permanent magnets.
- Two to three customer programs are expected to enter commercial production before the end of 2026.
- Phase 1A of the European permanent magnet facility provides nameplate capacity of approximately 2,000 metric tonnes per year. Phase 1B, which is expected to expand nameplate capacity to approximately 5,000 metric tonnes per year, is currently being designed with detailed engineering, advanced equipment procurement, supply chain planning and facility layout currently in progress.
- Neo's longer-term magnet roadmap targets 20,000 metric tonnes of annual production through continued global expansion, which the Company estimates could represent 10% to 15% of the projected rare earth permanent magnet market outside China.
"Advancing to commercial magnet production at our European permanent magnet facility is a defining milestone for Neo and demonstrates our ability to consistently deliver on our commitments to our customers and the market," said Rahim Suleman, President and Chief Executive Officer. "This achievement reflects three decades of magnetics expertise and the hard work of our teams across Neo, particularly in Estonia and Singapore. We built this facility in under two years and have won multiple program awards from Tier 1 motor manufacturers. Having now achieved commercial production, I want to thank our customers for their trust and partnership throughout the ramp-up, and our supplier partners for their support along the way."
Neo has been awarded multiple magnet programs from Tier 1 motor manufacturers, including programs for traction motor applications. Qualification samples have been delivered for each awarded program. The first of these programs is now in commercial production, and two to three programs are expected to be in commercial production before the end of 2026. Automotive magnet programs are typically awarded for the life of the vehicle platform they supply, which gives Neo multi-year volume visibility once a program is awarded.
Customer engagement continues to broaden beyond automotive, with active discussions across industrial, robotics and clean energy applications reflecting growing demand for qualified magnet supply in Europe and North America.
About Neo Performance Materials
Neo manufactures the building blocks of many modern technologies that enhance efficiency and sustainability. Neo's advanced industrial materials – magnetic powders, rare earth magnets, magnetic assemblies, specialty chemicals, metals, and alloys – are critical to the performance of many everyday products and emerging technologies. Neo's products fast-forward technologies for the net-zero transition. The business of Neo is organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals. Neo is headquartered in Toronto, Ontario, Canada; with corporate offices in Greenwood Village, Colorado, United States; Singapore; and Beijing, China. Neo has a global platform that includes manufacturing facilities located in China, Germany, Canada, Estonia, Thailand and the United Kingdom, as well as a dedicated research and development centre in Singapore.
For more information, please visit www.neomaterials.com.
Cautionary Statements Regarding Forward Looking Statements
This news release may contain "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof. Specific forward-looking statements in this news release include, but are not limited to, launch of the new project award, operational expectations resulting from the project award, anticipated increases in name plate capacity and revenue expectations and other matters relating thereto. In making the forward-looking information in this news release, the Company has applied certain factors and assumptions that are based on its current beliefs as well as assumptions made by and information currently available to the Company. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking information in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking information. There are many risk factors associated with the launch and operations of the new project platform. A number of factors could cause actual results to differ materially from those anticipated by the Company, including but not limited to the risks and uncertainties inherent in the nature of operations including the risks of a material adverse change in the Company's assets or revenues, or risks of unknown liabilities that may arise.
Readers are cautioned not to place undue reliance on forward-looking information. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking information whether as a result of new information, future events or otherwise, except as required by law. For more information on Neo, investors should review Neo's continuous disclosure filings that are available under Neo's profile at www.sedarplus.ca.
SOURCE Neo Performance Materials, Inc.
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