Neo Performance Materials said on 19 October that the European Climate, Infrastructure and Environment Executive Agency had invited it to prepare a grant agreement of up to €126 million for Project GAUSS in Estonia. The proposed expansion would link rare-earth separation, metal production and permanent-magnet manufacturing. Neo estimates the project’s total value at about €400 million.

The company said the plans include adding up to 3,000 metric tonnes of annual permanent-magnet capacity, with one-third earmarked for EU offshore wind. Neo’s magnet facility is expected to expand from a current nameplate capacity of 2,000 tonnes to about 5,000 tonnes a year. The grant is not final: an agreement, investment decision and required checks remain, with signature targeted by 23 March 2027; Neo estimates the project would take two to three years to complete.