COBALT advises Neo Performance Materials Inc. upon development of magnet manufacturing plant in Estonia
2022 - 11 - 24
For more than a year, Neo Performance Materials Inc. (“Neo”), the parent company of NPM Silmet OÜ, has been working on establishing a state-of-the-art sintered rare earth permanent magnet manufacturing facility in Estonia. The construction is expected to be launched in 2023, and the onset of manufacturing operations is planned for 2025.
The first phase of Neo’s planned magnet plant is designed to produce approximately 2,000 tonnes/year of sintered rare earth permanent magnet block. Neo has been in advanced commercial discussions for several years with multiple magnet customers in Europe, and those discussions indicate a level of demand for sintered rare earth magnets that far exceeds Neo’s planned Phase 1 production capacity. The Company is now considering plans to increase the plant’s capacity to 5,000 tonnes/year in a Phase 2 expansion, depending upon market conditions and other factors.
In November 2022, Neo received a grant of up to 18.7 million Euros for the project under Europe’s Just Transition Fund, which is the first such award to any critical materials company in the EU under the JTF program.
COBALT is advising Neo in all Estonian law matters arising in connection with developing the new magnet manufacturing plant, including among others real estate, corporate and state aid aspects. COBALT’s team involved in advising Neo includes partners Aivar Taro, Karina Paatsi, Martin Simovart, Elo Tamm, Egon Talur, and Monika Koolmeister, senior associates Heleri Tammiste, Mart Blöndal, Johanna-Britt Mikk, Sandra Sillaots, Madis Reppo, and Karli Kütt, junior associate Kristo Pullerits, and assistant lawyer Chris Oliver Rahumägi.