The Globe and Mail reports in its Friday edition that Neo Performance Materials does not make batteries or electric motors, but it does process rare earths and transforms the material into magnets used in many types of electric motors, not just traction motors for cars. The Globe's guest columnist Robert Tattersal writes that this stock is either a bargain or investors have some reason to be skeptical about Neo's self-proclaimed market position. Neo says it has 30 years of magnetics experience inside and outside of China. This is important because 85 per cent of all traction motors for EVs use motors driven by rare earth magnets and 90 per cent of global rare earth magnetics are produced in China today. Each EV traction motor uses one to two kilograms of rare earth magnets at $80 (U.S.) a kilo, so this is not a trivial manufacturing input. Neo is able to serve customers from its operations in China, but it is also creating a parallel supply chain in Estonia. This sector has had a negative gross margin swing of $40-million (U.S.) over the past two years alone, so analysts are reluctant to place much confidence on their earnings forecasts. Neo says the potential from rare earth magnets remains extremely positive.