Neo Performance begins producing heavy rare earths at Estonia plant

Neo Performance Materials (TSX: NEO) has produced its first batch of heavy rare earth elements following the successful commissioning of the solvent extraction line at its Silmet facility in Estonia.

The small-scale production line is currently operating at its nameplate capacity, producing separated terbium and dysprosium oxides from mixed rare earth carbonate feedstock, the company said in a press release on Friday.

Both dysprosium and terbium are essential inputs for high-performance sintered rare earth permanent magnets used in robotics, electric-vehicle traction motors, wind turbines, and industrial automation applications.

By developing this separation capability at Silmet, Neo says it is advancing “a secure, Europe-based supply of these critical materials to support its growing magnet manufacturing operations and to serve the broader strategic objectives of supply chain diversification.”

“The successful launch of our heavy rare earth separation in Estonia represents a critical step in Neo’s strategy to build the most vertically integrated rare earth magnetics value chain in Europe,” CEO Rahim Suleman stated in the release.

Europe’s first magnet plant

The new production line would complement the company’s existing rare earth magnet manufacturing plant in Narva, Estonia. The facility, which opened in September, is the first to mass-produce sintered magnets in Europe, with an initial capacity to produce 2,000 tonnes per year.

“Our rare earth value chain now spans both light and heavy rare earth processing, enabling the separation and finishing of select elements into value-added, engineered end-use applications,” Suleman added. “This achievement enables Neo to provide secure, traceable and high-quality heavy rare earth materials to our European permanent magnet facility, supporting our customers’ most demanding applications.”

With heavy rare earth separation commissioned, Neo said it will now focus on delivering stable product purity prior to transitioning to routine production capacity.

Shares of Neo Performance Materials fell nearly 1% and traded within a tight range of between C$22.23 and C$23.20 despite the milestone. The Toronto-based company has a market capitalization of C$944.4 million ($683.1 million).