London, April 10th (Argus) - Neo Performance Materials, headquartered in Canada, has produced the first batch of separated terbium and dysprosium elements at its factory in Estonia. Neo successfully launched a small-scale solvent extraction production line for heavy rare earth elements at the Silmet factory. The company produces terbium and dysprosium from a mixture of heavy rare earth carbonates. The solvent extraction production line is currently operating at maximum capacity and can reach its maximum production capacity. Neo is now focused on providing stable product purity before entering regular production capacity.
Terbium and dysprosium are essential raw materials for high-performance permanent magnets. These magnets are used in wind turbines, electric vehicles, robots, and various other industrial applications. In addition to the rare earth separation business, Neo is advancing its European permanent magnet facilities in Estonia. The company's goal is to achieve commercial production of its permanent magnet facilities by 2026. All processing of the new production line is completed in Europe. Neo stated that this is "an important milestone in establishing advanced heavy rare earth separation capabilities in Europe". Terbium and dysprosium are mainly produced in China. Since April 4th, 2025, these two rare earths have been subject to China's export control. Since the implementation of export control, the supply of terbium and dysprosium outside China has sharply decreased, pushing up the prices of dysprosium and terbium and causing significant supply pressure for consumers. Developing a heavy rare earth supply chain other than China has become a major priority for Western governments. Rahim Suleman, the president and CEO of Neo, said: "Our successful launch of the heavy rare earth separation unit in Estonia is a key step in Neo's strategy to establish the most vertically integrated rare earth magnetic value chain in Europe."
