Neo Performance Materials said on Friday it has started construction of a manufacturing facility in Europe to produce rare earth permanent magnets, which are key for both electric vehicles and wind turbines.
The company said the manufacturing facility in Narva will be near its existing rare earth separation plant in Sillamäe.
The development comes at a time when dependence on China for key materials and technologies has become a major issue for western countries, with some countries ramping up support to boost domestic production of critical minerals including rare earths.
Rare earth permanent magnets are used in a wide variety of technologies that increase energy efficiency and reduce carbon dioxide emissions.
These magnets are especially integral to the drivetrains of the majority of electric vehicles manufactured, where they increase the power and efficiency of the motors.
(By Tanay Dhumal)
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