Neo Performance Materials Secures Heavy Rare Earth Supply via Carester Partnership
Event summary
- Neo Performance Materials has entered a binding term sheet with Carester SAS to secure heavy rare earth oxides for its European magnet manufacturing operations.
- The partnership includes a multi-year agreement to recycle Neo's magnet production scrap and process Carester's mixed rare earth carbonate at Neo's Silmet facility in Estonia.
- Neo's European sintered magnet facility is expected to launch commercial production in the second half of 2026.
- Carester's Caremag facility in Lacq, France, will represent the largest heavy rare earth separation and magnet recycling capacity in Europe.
The big picture
This partnership underscores the growing importance of securing rare earth supply chains in Europe, particularly as the region seeks to reduce dependence on foreign sources. The deal also highlights the strategic value of recycling and separation capabilities in creating a more circular economy for critical minerals. With Neo's European sintered magnet facility set to launch commercial production in the second half of 2026, the timing of this partnership is critical for meeting anticipated demand.
What we're watching
- Supply Chain Security
- How Neo's partnership with Carester will affect its ability to secure critical heavy rare earth inputs for European magnet production.
- Execution Risk
- Whether Neo can sustain the pace of its European expansion amid increasing demand for rare earth materials.
- Circular Economy
- The pace at which Neo and Carester can close the loop on magnet production scrap and increase material utilization.