Neo Performance Materials begins commercial rare earth magnet production in Europe

Neo Performance Materials has transitioned to commercial series production of sintered rare earth permanent magnets in Europe. The company is now supplying Tier-1 suppliers for electric vehicle traction motors from its Silmet facility in Estonia, with plans to increase production from 2,000 to over 5,000 tonnes per year.

To secure its raw material supply chain, Neo Performance Materials has signed a memorandum of understanding with Rainbow Rare Earths. This partnership involves Neo providing technical support and solvent extraction technology for Rainbow’s Phalaborwa project in South Africa. In exchange, Neo will receive offtake rights to 40% of the project's neodymium-praseodymium oxide production and 65% of its mixed heavy rare earth carbonate production, which includes dysprosium and terbium.

The Phalaborwa project aims to recover rare earth elements from legacy phosphogypsum residue—a byproduct of fertilizer production—rather than through new mining operations.