Neo Signed A Rare Earth Purchase And Processing Agreement With Carester.

London, September 2 (Argus) - Canadian rare earth company Neo Performance Materials has signed a purchase and processing agreement with French rare earth processing and technology company Carester.
Neo will obtain separated dysprosium and terbium oxides from Carester's Caremag recycling and heavy rare earth separation facility in France. Caremag is expected to start production in the first quarter of 2026.
The oxide dysprosium and oxide terbium supplied by Carester will provide some of the necessary raw materials for Neo's European sintered magnet factory, which is expected to start commercial production in the second half of 2026.
Neo opened a rare earth magnet factory in Narva, Estonia in September 2025. The facility began shipping sintered magnet samples in April 2025, when it had already produced 18,000 assembled magnets, meeting the standards for electric vehicle traction motors. The facility's first phase capacity is 2,000 tons per year, and it plans to expand to 5,000 tons per year.
This week's signed agreement also covers rare earth recycling. Neo will provide Carester with manufacturing of neodymium iron boron waste, which is a by-product of sintered magnet production, for recycling. Carester will send the praseodymium, neodymium, dysprosium, and terbium oxides produced from neodymium iron boron waste back to Neo. This will enable Neo to maintain rare earths in the supply chain and increase its material utilization, creating a closed-loop recycling process.
Neo and Carester also reached a fee agreement, under which Neo will process Carester's mixed rare earth carbonates at its Estonian factory. Neo will retain the processing of light rare earths and send the heavy rare earths back to Carester.
Rahim Suleman, the president and CEO of Neo, said that this partnership combines Carester's expertise in heavy rare earth separation and recycling with Neo's European separation and magnet manufacturing capabilities.