Neo and Cyclic Partner to Build Trans-Atlantic Rare Earth Recycling Chain
Event summary
- Neo Performance Materials and Cyclic Materials signed a non-binding MOU on March 2, 2026 to develop a circular rare earth supply chain for magnetic materials.
- The collaboration aims to establish a closed-loop, trans-Atlantic supply chain for recycling magnet production scrap and end-of-life materials.
- Neo will supply magnet scrap from its European operations to Cyclic for recycling into mixed rare earth oxides, which will then be reintegrated into Neo's manufacturing processes.
- The partnership aligns with the EU Critical Raw Materials Act's objectives to increase rare earth processing and recycling capacity in Europe.
The big picture
This partnership underscores the growing emphasis on circular supply chains in the rare earth sector, driven by regulatory pressures and the need for sustainable sourcing. The collaboration between Neo and Cyclic aims to address supply chain resilience and traceability, critical factors for the energy transition and clean technology applications. The initiative aligns with broader industry trends towards localized and sustainable critical mineral processing.
What we're watching
- Regulatory Alignment
- Whether the partnership can fully align with the EU Critical Raw Materials Act's requirements and timelines.
- Execution Risk
- The pace at which the non-binding MOU can be converted into binding agreements and operationalized.
- Market Impact
- How this collaboration will affect the broader rare earth supply chain dynamics in North America and Europe.