Neo Wins Another Traction Motor Award with an Additional Tier 1 and OEM Customer in Europe
NEWS
Neo Wins Another Traction Motor Award with an Additional Tier 1
and OEM Customer in Europe
TORONTO, Canada, July 9, 2025 – Neo Performance Materials Inc. ("Neo" or the "Company") (TSX:
NEO) (OTCQX:NOPMF) today announced that it has been awarded the supply contract for a new platform
of permanent rare earth magnets with a prominent European Tier 1 supplier of electric vehicle ( “EV”)
traction motors to a major OEM. Both the Tier 1 and OEM represent new additions to Neo’s growing
customer base. This new commercial partnership further strengthens Neo's reputation as a preferred supplier
to multiple automotive clients.
These magnets will be supplied by Neo’s new rare earth magnet facility in Narva, Estonia, which is already
producing and shipping qualification samples to meet contract obligations of automotive platforms it has
been awarded. The project award is estimated to be approximately $50 million in cumulative revenues over
the life of the project at current rare earth market prices , based on customer projections . Commercial
delivery of the magnets is anticipated to begin in mid-2026 for this award.
Neo’s new European facility is the first sintered magnet plant to come online outside Asia, with an explicit
focus on European and North American Electric Vehicle , Industrial Power Tooling, and Offshore Wind
customers. The facility has already been awarded multiple traction motor magnets – widely regarded as the
most technically demanding product category for sintered magnets for its high requirements in power and
heat management. The facility has also expanded its product categories to non-traction-motor applications
as demand for local supply chains has increased. Co-funded by the European Union’s Just Transition Fund,
this facility is projected to produce 2,000 t/year in phase 1, with plans to scale to over 5,000 t/year in Phase
2. The official opening ceremony for this plant will be held in September of this year, the details of which
will follow in the coming weeks.
Rahim Suleman, President and CEO said: “We welcome yet another commercial recognition from a new
customer. What the team has accomplished in this new European rare earth permanent magnet facility is
remarkable. The Neo team successfully built this magnet plant in just 500 days and is responding to growing
demand from automotive customers with a sense of urgency , while staying grounded in our principles of
responsible ramp-up curves for new plants. We are here for our customers, and we are proud that they are
recognizing us in return.”
Through its bonded magnetic materials business, Neo has been a designer, manufacturer and supplier of
rare earth magnetic products for EV and PHEV traction motors for years – a highlight being the design of
the first commercialized and supplied heavy-rare-earth-free magnetic powder in current NEV motors. Neo
has been supplying rare earth magnetic products to the automotive and industrial motor industries for over
three decades.
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 center 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, 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 t o
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.
Information Contacts
Investor Requests: Media Requests:
Irina Kuznetsova Vasileios Tsianos
Director, Investor Relations Vice President, Corporate Development
(416) 367-8588 ext. 7334 (416) 367-8588 ext. 7335
email: [email protected] email: [email protected]
Website: www.neomaterials.com