Sunday, September 21, 2025

Canada shouldn’t settle for sectoral tariffs: Poilievre

By Spencer Van Dyk
 September 21, 2025 

Conservative Leader Pierre Poilievre is seen during a news conference in Ottawa on Monday, July 14, 2025. (Adrian Wyld/The Canadian Press)

Amid a protracted trade war with the United States, Conservative Leader Pierre Poilievre says Canada shouldn’t settle for a deal that includes sectoral tariffs.

“I would seek a tariff-free deal,” Poilievre told CTV’s Question Period host Vassy Kapelos in an interview airing Sunday, when asked whether he would accept a deal from the Americans that includes a base level of tariffs on sectors like steel, aluminum and autos.

“We used to have that privileged access to the American economy, and in exchange for that, we could provide more continental security that would make both our countries more secure and stable,” Poilievre added. “That’s the deal that I would go for.”

U.S. President Donald Trump launched the trade war in February, when he implemented sweeping tariffs on Canadian goods. He’s since carved out an exemption for imports that are compliant with the Canada-U.S.-Mexico Agreement (CUSMA).

But he’s also set out to fully transform America’s global trade regime, imposing significant sectoral tariffs on steel, aluminum, autos and copper. Those levies are stacked on top of any import taxes aimed at specific countries, such as Canada.


Canada and the U.S. have been in ongoing negotiations for a new economic and security deal for months, with Prime Minister Mark Carney and his team insisting they’re prioritizing getting the “best deal” over a timely one.

Late last month, Carney announced that Canada is dropping many of its counter-tariffs by exempting goods covered by CUSMA. Asked by reporters at the time whether Trump had assured him the move would help spur negotiations, the prime minister said “yes.”

“I think that the key back home, though, is to become more self-reliant, strong and stand on our own two feet, so that we have the leverage to negotiate,” Poilievre told Kapelos, blaming Liberal environmental policies for Canada’s over-dependence on the U.S., and adding Prime Minister Carney has “unfortunately negotiated out of a position of weakness.”

Poilievre pointed to what he’s called “anti-development Liberal policies,” such as the oil and gas sector emissions cap, the industrial carbon tax, and Bill C-69, the Impact Assessment Act, which many Conservatives have dubbed the “no more pipelines act.”

“If we were building pipelines and port expansions and moving our resources to the Pacific and the Atlantic to faraway markets, then we could go to the Americans with the ability to say we have other options,” Poilievre said.

When pressed, however, on the mercurial nature of the U.S. president and whether it’s fair to blame the Liberal government for the state of negotiations, when Trump’s expressed purpose is to target investment, Poilievre said Canadians should “hold Mr. Carney to the standard he set for himself.”

“He said he’d have a deal with Trump by July 21, (and) still no deal,” Poilievre said. “He said that he would put elbows up, he put elbows down. He said he could handle Donald Trump, and all he’s done is make concession after concession.”

In addition to the counter-tariff carveout, Canada has made other concessions in the negotiations with the American administration. For example, Carney scrapped the controversial digital servicestax, which Trump vehemently opposed.

Poilievre says Trump “smells weakness” as a result.

When pressed on what he would do differently if he were prime minister — for example, by implementing dollar-for-dollar tariffs or increasing sectoral tariffs on aluminum to match those of the U.S. — Poilievre said he would pass his proposed Canadian Sovereignty Act.

The plan calls on the government to “repeal the Liberal growth-blocking laws,” such as C-69, the industrial carbon price, and the oil and gas sector emissions cap, and “reward those who build,” in part by eliminating the capital gains tax on businesses that reinvest in Canada.


And when pressed again on the similarities of that proposal to the Liberals’ recently passed Bill C-5 — dubbed the Building Canada Act, aimed at giving government sweeping new powers to approve major projects — Poilievre insisted “Liberal laws and Liberal bureaucracies” are getting in the way of development.

Poilievre, in his interview, also discussed the size of the public service —saying there should be “billions of dollars” in cuts to the federal bureaucracy — and his upcoming mandatory leadership review, about which he would not say whether there is a specific level of support he is looking to secure.

You can watch Conservative Leader Pierre Poilievre’s full interview on CTV’s Question Period Sunday at 11 a.m. ET.


Spencer Van Dyk

Writer & Producer, Ottawa News Bureau, CTV News



Trump tariffs on Canadian autos, parts bump to US$380 million in July: report

By The Canadian Press
September 19, 2025

Canadian car and auto part exports faced more than US$380 million in tariff duties in July, marking a sharp jump from previous months as U.S. tariffs kicked in. Vehicles are seen at the Mercedes-Benz Vehicle Preparation Center at the Port of Baltimore, where new Mercedes-Benz vehicle imports are processed before distribution to dealerships, Thursday, March 27, 2025, in Baltimore. (AP Photo/Stephanie Scarbrough)

Canadian vehicle and auto part exports faced more than US$380 million in tariffs in July, a sharp jump from previous months as U.S. levies kicked in.

A data analysis released last week by Anderson Economic Group shows US$1.1 billion in tariffs were imposed on assembled vehicles from Canada and Mexico in July, including more than US$311 million on Canadian autos alone.

That figure represents roughly 26 per cent of the total dutiable value of Canadian vehicle exports, while the US$72 million in levies on auto parts from Canada represented 36 per cent of their dutiable value.

The group says July marked a dramatic shift from the previous three months when U.S. Customs had been allowing automakers to claim exemptions for most vehicles under the Canada-United States-Mexico Agreement.

But it says that likely came to an end in July, as the share of Canadian vehicles exempt from tariffs under the free-trade agreement plunged from 99 per cent to 36 per cent.


Anderson Economic Group principal and chief executive Patrick Anderson says he expect these increased costs “will become embedded” into the prices paid by consumers in the near future.

This report by The Canadian Press was first published Sept. 19, 2025.
Automakers could be on the hook for billions under EV mandate if sales don’t ramp up

By The Canadian Press
September 19, 2025 

An electric vehicle is charged at a Tesla charging station in Ottawa on Wednesday, July 13, 2022. THE CANADIAN PRESS/Sean Kilpatrick

OTTAWA — Canadian automakers are warning they could be on the hook for billions of dollars in credit purchases if Canada’s electric vehicle mandate is enforced as written, and sales don’t ramp up.

Automakers already have deals lined up with companies like Tesla to buy credits to close expected gaps between sales and the targets set by the EV mandate. That could end up costing the industry more than $3 billion by 2030, Canadian Vehicle Manufacturers’ Association president Brian Kingston told the House of Commons international trade committee on Thursday.

“According to our estimates, over $1 billion has already been committed to this,” Kingston said.

The CVMA represents Ford, General Motors and Stellantis.

Kingston said it’s not clear how much money has been spent already on buying credits for the 2026 model year, which the government recently exempted from the EV sales mandate.

“I can’t tell you how much money would have already gone,” he said. “It’s committed to a multi-year contract that you could effectively option these credits as required over the coming years.”

The EV sales mandate requires that automakers ensure a certain percentage of new cars, SUVs and light-duty trucks sold are zero-emission vehicles, including plug-in hybrids.

The mandate was supposed to start at 20 per cent in 2026. Now it will begin in 2027 with an initial target of 27 per cent, rising steadily every year until 2035, when all new vehicle sales must be EVs.

The federal government has ordered a 60-day review of the EV mandate. Automakers have repeatedly called for its full repeal.

EV sales in Canada reached almost 15 per cent of total sales last year, when the government was offering consumer rebates of up to $5,000, and surpassed 18 per cent in the final three months of the year.

Sales plunged after funding for the rebate ran out in January and the government abruptly ended the program. The most recent data from Statistics Canada shows EV sales accounted for 7.7 per cent of all new vehicle sales in July.

The government paused the implementation of the mandate to help give Canada’s auto sector more liquidity in the face of U.S. tariffs.

An analysis by Anderson Economic Group suggests Canadian cars had been hit with $311 million in tariffs as of July, with another $72 million on parts made in Canada.

With 2026 models already being sold, Kingston said Tesla would be one of -- if not the only -- carmaker with a surplus of credits on hand to sell to other companies, since it doesn’t sell any gas-powered vehicles.

The regulations also allow carmakers to invest in charging infrastructure to earn credits if they won’t meet their sales mandate -- one credit for every $20,000 invested. But the government capped that measure at 10 per cent of a company’s sales target -- meaning automakers can’t buy their way out of a deficit by simply building charging stations.

Kingston said companies will almost certainly have to buy credits from other automakers like Tesla to meet their obligations.


If sales do ramp up, automakers aren’t necessarily on the hook for those credit-purchase agreements as they’re only option agreements. But the companies worked out these agreements years ahead of time in case sales still lagged as sales targets increased.

“There’s a concern that as the targets become more stringent, there’ll be fewer credits available in the marketplace,” David Adams, head of the Canadian organization representing automakers like Honda, Toyota and Hyundai, told The Canadian Press.

“So you want to make sure that you have those ΓǪ credits in your back pocket in advance, so that you can utilize them when you have to.”

Like Kingston, Adams couldn’t say for sure how much money automakers have spent already on credits for the 2026 model year, noting many of the agreements are subject to nondisclosure agreements.

“You’re certainly talking millions, if not tens of millions,” Adams said.

This report by The Canadian Press was first published Sept. 19, 2025.

Nick Murray, The Canadian Press



Canada launching consultations in advance of CUSMA trade pact review, LeBlanc says

By The Canadian Press
September 19, 2025 

Prime Minister Mark Carney shakes hands with Mexican President Claudia Sheinbaum following a joint news conference at the National Palace in Mexico City on Thursday, Sep 18, 2025. THE CANADIAN PRESS/Adrian Wyld

The federal government says it is launching public consultations on the Canada-United States-Mexico Agreement, or CUSMA, ahead of next year’s planned review of the North American trade pact.

Canada-U.S. Trade Minister Dominic LeBlanc announced the consultations Friday in Mexico City, where he and Prime Minister Mark Carney were wrapping up two days of meetings with Mexican officials.

Ottawa will hear from provinces, territories, industry and workers through the consultations as it gears up to formally review CUSMA in 2026.

“You’ll see, over the coming weeks, activities and opportunities for Canadians, and for those that are affected by the recent turbulence in the trading relationship, to offer us views on how we should approach the review conversations with the United States and with Mexico,” LeBlanc said.

An exemption for CUSMA-compliant goods has so far shielded much of Canada’s trade from U.S. President Donald Trump’s tariff war, although sectoral duties still exist in the steel, aluminum, automotive and softwood lumber industries.


U.S. Ambassador to Canada Pete Hoekstra said earlier this week that Trump had hoped to reach a “much bigger deal” with Canada that would go beyond renegotiating the current free trade pact.

LeBlanc said that while Ottawa would sign a “bigger deal” with the U.S. if Washington offered something in Canada’s interests, his short-term focus is on addressing the sectoral tariffs. He said he expects to be back in Washington for further trade talks in the next few weeks.

Hoekstra was asked during a “fireside chat” in Fredericton about his opinion on how the two countries could get over the “speed bump” they have hit.

“I may have opinions, my real opinions on dealing with the speed bump, I couldn’t say in public,” Hoekstra replied.

“We hope that the Canadian government comes down on the side of saying, if this is a great relationship, yeah, we’re committed to moving along a path that builds off of what we’ve done for the last 30 years ... we also recognize that as a sovereign country, Canada may decide to go a different direction. That’s a Canadian decision, not ours.”

Moving forward, Hoekstra said Trump has made it clear the Republican Party is embracing tariffs, and they will be part of its future. He said the “good news” is that Canada has “the lowest tariff rate of any country in the world.”

If Canada thinks of the United States as an “unreliable partner” and is “mad” at it then both countries should look at doing business elsewhere, he said.

Carney announced a new economic and security agreement on Wednesday with Mexican President Claudia Sheinbaum.

The agreement was billed as a comprehensive strategic partnership. It includes plans to build infrastructure, such as ports, rail and energy corridors, while tackling crime and protecting the environment.

Carney and Sheinbaum emphasized that the new deal will “complement” CUSMA.

The prime minister said Wednesday he’s confident the two countries’ individual reviews and collective discussions on CUSMA will “reinforce the strength of our economies, our individual economies, and the fact that we are stronger together.”


Carney visited the Canadian Pacific Kansas City Ferrovalle train yard on Friday — his only scheduled event for the day — before departing Mexico City for Ottawa.

— With files from Craig Lord in Ottawa and Hina Alam in Fredericton

This report by The Canadian Press was first published Sept. 19, 2025.
Ontario sweetens deal for Chapman’s Ice Cream expansion with $27M investment

ALL CAPITALI$M IS $TATE CAPITALI$M

The new facility will be 175,000 square feet and enable Chapman’s to continue making over 200 products using exclusively Canadian milk and cream.

September 19, 2025 

Ontario Premier Doug Ford enjoys a Chapman's ice cream treat at a press conference outside the facility on Fri., Sept 19, 2025. (CTV News/Steve Mansbridge)

The Ontario government is scooping out $27 million for Chapman’s, Canada’s largest independent ice cream manufacturer, to help expand its operations and build a new facility in Markdale.

Premier Doug Ford announced the investment during a press conference on Friday outside Chapman’s facility, calling it a “major vote of confidence” in Ontario’s economy and workers.

The province’s investment is on top of Chapman’s over $200 million it’s fronting for the project, which is expected to create 200 new jobs, bringing the family-run company’s workforce to over 1,000 employees.

“We’re going to continue doing whatever it takes to protect workers by cutting red tape and making Ontario the most competitive place in the G7 to invest and create jobs,” said Ford during a press conference on Friday outside Chapman’s facility, before stating his love for the Canadian-made products.

“I eat these things every night,” Ford added, holding a Chapman’s ice cream bar. “These are the best ice cream sandwiches anywhere,” he added before taking a bite.


The new facility will increase production capacity, allowing Chapman’s to develop new products, meet growing demand, and expand into international markets.

Chapman’s COO Ashley Chapman said the province’s support will help the company establish a stronger competitive ground in the face of increasing competition from multinationals.


Kim Phillips

Journalist, CTVNews.ca Barrie
FIRST NATION$ CAPITALI$M

Long denied financing, Indigenous-owned investment dealers are flipping the script

By The Canadian Press
 September 21, 2025 

The Haisla First Nation's Kitimaat Village is seen in an aerial view along the Douglas Channel near Kitimat, B.C., on January 10, 2012. Cedar Leaf participated in a $350 million bond issuance in June that will contribute to financing Haisla First Nation and their majority equity ownership in Cedar LNG.THE CANADIAN PRESS/Darryl Dyck

Getting a business loan is both a foundation of economic growth and something Indigenous people have long faced barriers to access, but an emerging trend has First Nations flipping the script and becoming financiers themselves.

Ventures like Cedar Leaf Capital, which opened shop last October, and First Nations Financial Markets that launched earlier this month, are both majority-Indigenous owned firms working their way into the capital-raising system.

As investment dealers, they act as the go-between for companies and institutions trying to raise money and the investors who will ultimately buy the bonds or equity.

Beyond making a profit for their First Nation owners, the firms are also aiming to build Indigenous capacity in the financial world, and form part of a wider push to reduce the barriers that have stood in the way of economic reconciliation.

“Capital markets [have] been woefully under-representative of Indigenous people, businesses, and communities,” said Clint Davis, an Inuk from Labrador who is CEO of Cedar Leaf.


The rise of such organizations can help shift the trend through direct hiring, as with the all-Indigenous three-person bond trading team at Cedar Leaf, as well as by helping finance major Indigenous projects.

Among the 54 bond issuances, worth more than $41 billion, that Cedar Leaf has already participated in was a deal raising some of the $715 million that 36 First Nations in British Columbia needed to buy a 12.5 per cent stake in Enbridge’s Westcoast natural gas pipeline in May.

The deal was also the first to use the Indigenous loan guarantee program, which aims to provide lower interest rates on Indigenous loans through federal government backing.

The program forms part of the growing ecosystem of Indigenous finance that also includes the First Nations Finance Authority, established almost 20 years ago to help member nations secure lower interest rates by pooling resources.

Cedar Leaf became part of the group that sells the authority’s bonds to investors when it got in on the group’s first 30-year bond in June, raising $350 million to help Haisla First Nation finance their majority equity ownership in Cedar LNG.

The deals, and Cedar Leaf’s participation, shows a shift in how Indigenous groups are raising money.

“Cedar Leaf Capital is not only filling a long-overdue gap in our financial system — it is reshaping it,” said Scott Thomson, CEO of Scotiabank, in a statement.

The bank led the launch of Cedar Leaf with partners Nch’kay Development, Des Nedhe Group, and Chippewas of Rama First Nation, with the intention that the firm will be become wholly Indigenous-owned, controlled and operated in the future.

As the federal government focuses on major resource projects, financiers like Cedar Leaf can make sure Indigenous groups are fully empowered to lead and benefit from the opportunities, said Thomson.

The emergence of the firms and other programs are coalescing to create real momentum on economic participation, said Davis.

“A lot of things are starting to converge here, where there’s great opportunity for communities to participate in these medium- and large-scale projects.”


The rollout of the federal government’s major projects initiative, which includes dozens of potential contenders for Indigenous participation, shows just how many opportunities are in the works, and how much funding will be needed, said Mark Podlasly, CEO of the First Nations Major Projects Coalition.

“We need other places to go and other ways to get access ... so anything that allows nations alternative ways to get to cheaper capital is going to be appreciated,” he said.

He noted these deals are Indigenous groups using their own capital — they’re not looking for grants, but said there are still limitations they’re working against in trying to put it all together.

“It’s going to take creativity, not just from the capital markets, but from Indigenous people as well, to think how do we co-function together to get to the ultimate objective, which is empowerment, economic empowerment,” Podlasly said.

Beyond directly helping fund resource projects, the rise of Indigenous-owned investment dealers also provides a new avenue for companies and organizations in the wider economy to participate in economic reconciliation, said Robert Van Belle, chief executive of First Nations Financial Markets.

“There’s going to be a natural inclusion of our dealer in syndicates where the issuers are seeking acts of reconciliation with First Nations.”

He sees the potential for such inclusion from companies such as in the insurance sector or large institutions like pension funds, which don’t have the direct relations that many resource companies look to engage.

The strategy has been in operation in the U.S. for some time now, where big companies have reserved a segment of their bond raising for dealers owned by specific groups, whether that’s minorities, women or veterans, with similar aims of economic inclusion.

First Nations Financial Markets was created when six Alberta First Nations bought a majority interest in Agentis Capital Markets, an investment dealer that Van Belle led.

He said conversations were already underway with the First Nations when Cedar Leaf was announced, but the trend shows momentum in the space.

The firm, now majority owned by the Athabasca Chipewyan First Nation, Cold Lake First Nation, Fort McMurray 468 First Nation, Heart Lake First Nation, Sawridge First Nation, and Whitefish Lake #128 First Nation, also intends to directly hire Indigenous staff, but is still working through that process, said Van Belle.

Chief Isaac Twinn of Sawridge First Nation said in a statement that the firm is a game-changer for bringing First Nations to the capital markets table.

“For too long, decisions have been made around us rather than with us. FNFM is one step toward changing that — ensuring First Nations participation in capital markets through capacity building,” said Twinn.

“The real opportunity lies in scaling this model so that economic reconciliation translates into tangible, lasting prosperity for all our communities.”

It’s still early days for Cedar Leaf as well, with the near-term focus on securing more government and private partners and wrapping a first full year of operations, but it’s already feeling like a momentous shift, said Davis.

“This is quite a period of renaissance for the Indigenous community, and it’s going to be really exciting for the next 10 years. I’m just really happy and I feel honoured to be a part of it.”

This report by The Canadian Press was first published Sept. 21, 2025.

Ian Bickis, The Canadian Press
Stellantis detects breach at third-party provider for North American customers

By Reuters
September 21, 2025 

The Stellantis sign is seen outside the Chrysler Technology Center, Jan. 19, 2021, in Auburn Hills, Mich. Stellantis on April 26, 2023. (AP Photo/Carlos Osorio, File)

Stellantis STLAM.MI detected unauthorized access to a third-party service provider’s platform that supports its North American customer service operations, the company said in a statement on Sunday.

The automaker said the incident, which is under investigation, exposed only basic contact information and did not involve financial details or sensitive personal data. Stellantis did not specify how many customers were affected.

“Upon discovery, we immediately activated our incident response protocols ... and are directly informing affected customers,” the Chrysler parent said in the statement.

It said it had notified authorities and urged customers to be alert to possible phishing attempts.

Automakers worldwide have reported a spate of cyber and data breaches in recent months, as increasingly sophisticated threat actors disrupt operations and compromise sensitive data.


Earlier this month, British luxury carmaker Jaguar Land Rover said that its retail and production activities were “severely disrupted” following a cybersecurity incident, forcing its factories to stay shut until September 24.

(Reporting by Surbhi Misra in Bengaluru; Editing by Muralikumar Anantharaman and Kim Coghill)

 

Chinese state iron ore trader to halt some BHP orders in dispute

Jimblebar, one of seven iron ore mines BHP operates in the Pilbara. (Image courtesy of AGC)

China’s state-run iron ore trader has told the country’s steel mills to temporarily stop using a popular product from BHP Group after talks on long-term contracts faltered, according to people familiar with the matter.

China Mineral Resources Group Co., created by Beijing to boost pricing power in the global iron ore trade, urged mills to suspend purchases of BHP’s Jimblebar blend fines from next week, the people said, asking not to be identified discussing private deliberations. The call was echoed by the China Iron & Steel Association, they added.

While neither body has formal authority over any individual steelmaker’s commercial operation, the recommendation has effectively become binding because of CMRG’s political clout and its direct reporting lines to top government officials, the people said.

The move underscores China’s push to gain greater bargaining power with the world’s top iron ore suppliers, arguing that its vast steel industry should secure better terms. Established three years ago, CMRG has been tasked with shifting leverage from major producers such as BHP, Rio Tinto Group and Vale SA toward the world’s largest iron ore buyer.

CMRG and CISA spokespeople didn’t respond to a request for comment. A BHP spokesperson said it couldn’t comment on commercial arrangements.

Some large state-owned mills have already withdrawn orders for Jimblebar cargoes, while others are weighing storing shipments in bonded port zones rather than clearing them through customs, the people said. Jimblebar is one of BHP’s key mines in Western Australia, supplying ores with about 60% iron content that are widely used in Chinese sintering blends.

The giant trader has expanded its role to try and stabilize the market and curb price volatility. It has been pushing to purchase cargoes directly from miners under long-term contracts at discounted rates, but little progress has been made, the people said.

Futures of the steel-making ingredient in Singapore rose as much as 1.3%, before easing slightly to $106.50 a ton by 4:14 p.m. on Friday. Yuan-priced iron ore on the Dalian exchange advanced 0.9%.

The steel association convened a meeting in Beijing on Thursday to review market conditions and prepare for a new port-side spot index for imported iron ore, according to a statement. The industry has been working on a local benchmark to reduce reliance on global measures such as S&P Global Commodity Insights’ Platts index.

Senior trading executives from major Chinese mills and trading houses attended the meeting, the statement said.

(By Katharine Gemmell and Alfred Cang)

 

Two bodies found in search for Freeport Indonesia workers trapped in mine, reports say


View from the Grasberg mine, Papua. Credit: Richard Jones | Flickr

Two bodies have been recovered in the search for seven Freeport Indonesia workers trapped underground at a major copper mine since September 8 due to heavy mudflows, Indonesian media reported.

The team is still looking for the other workers and the identification process will begin when police arrive, media outlets quoted a company spokesperson as saying.

Representatives for Freeport Indonesia and the local police did not immediately respond to a Reuters request for comment.

After the incident at Grasberg, one of the world’s biggest copper mines, Freeport suspended operations at the mine’s main production block, senior Indonesian mining ministry official Tri Winarno said this week. He added that smaller sites were up and running.

In addition to five Indonesians, the workers included a Chilean and a South African, Tri said.

(By Gayatri Suroyo; Editing by Edwina Gibbs)

 

Neo Performance opens Europe’s first rare earth magnet plant


Image: Neo Materials

Neo Performance Materials (TSX: NEO) has officially opened its $75 million facility in Estonia, becoming the first to mass produce rare earth magnets for Europe’s automotive and wind energy sectors.

The facility, according to media reports, began production on Friday, targeting an initial rate of 2,000 tonnes of magnets per year, enough to supply over a million electric vehicles or more than 1,000 offshore wind turbines.

However, Neo’s chief executive Rahim Suleman sees further room for production growth given Europe’s reliance on China for its magnets. In an interview with the Financial Times, he says the EU is relying on China for 98% of its magnet use, which is “untenable” especially with demand set to almost triple in the next 10 years.

As such, the company is planning to ultimately expand its annual production rate to 5,000 tonnes to match that projected demand.

Neo’s plans also align with those of the EU, which aims to boost domestic processing of critical minerals such as rare earths to 40% by 2030, thereby reducing its reliance on China. The new facility, situated in the northeastern city of Narva, was supported by an EU grant of up to €18.7 million.

“The rare earth magnets that will be produced here are indispensable to growth and innovation,” said European Commission president Ursula von der Leyen in a statement cited by FT.

With the official plant opening, Neo announced on Friday it has signed contracts with German auto suppliers Schaeffler and Bosch.

In a press release announcing its deal with Bosch, Suleman said: “This secures a significant portion of our future production and speaks to our strategy of prioritizing partnerships with the world’s largest and most innovative companies.”

Estonian Prime Minister Kristen Michal, speaking at the plant’s opening ceremony, described the facility as “the most cost-efficient magnet factory ever built in the Western world.” The plant also sits next to Neo’s existing rare earth separation facility in Estonia.