Neo Wins New Award with Leading European Tier 1 Manufacturer of EV Traction Motors
- Commercial award peak year volume equivalent to 35% of completed Phase I capacity
- Sintered magnets to be supplied by Neo's Magnequench new manufacturing facility in
Europe
This commercial win reflects Neo's proven competency to deliver competitive, integrated and resilient supply chain solutions to serve the growing need of automotive OEMs for geographic diversity, local-to-local component and critical raw materials sourcing. This award follows customer detailed design and technology specifications, cost quotations, deeply integrated supply chain, and a proven track record of producer-customer collaboration for the specific application these magnets serve. The award is subject to finalizing certain project contracts that are customary in these circumstances.
"We welcome this significant commercial validation from a Tier 1 EV motor manufacturer. Neo is focused on becoming the first manufacturer and supplier of made-in-EU rare earth magnets for EV traction motors. This is one more endorsement that the need for parallel, local-for-local supply chains is defining the future of the EV manufacturing transition in
Magnequench Sintered Magnet's new manufacturing facility in
Neo is actively positioning to be a lead beneficiary of the secular changes driven by new government regulations and the EV industry's transition towards local-for-local supply chain participants with global manufacturing, sourcing optionality, and proven automotive qualification experience. Data from Adamas Intelligence, the
Historically, Neo's Magnequench division has supplied the automotive industry for more than two decades with rare earth magnetic materials – more than half of its sales attributed to the automotive industry. Since its founding more than three decades ago, Neo's Magnequench has developed, manufactured, and supplied rare earth magnetic products to customers with high qualification standards in vehicle traction motor, water circulation, residential appliances, and industrial automation applications globally. Neo's Magnequench proven competency in manufacturing and commercializing magnets for EV traction motors includes the co-development of the first rare earth magnet without the use of heavy rare earths in a presently ongoing platform of a Japanese OEM.
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2023 |
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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, the timing, production capacity, estimated revenues and other details relating to the commercial award and commercial market for sintered magnets and hybrid and electric vehicles. 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.
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.
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 and magnets, specialty chemicals, metals, and alloys - are critical to the performance of many everyday products and emerging technologies. Neo's products help to deliver the technologies of tomorrow to consumers today. The business of Neo is organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals. Neo is headquartered in
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