Neo/Carester to advance European rare earth supply chain

Canada’s Neo Performance Materials says that it has entered into a binding term sheet with Carester SAS, a French rare earth technology company currently building a recycling and heavy rare earth separation facility, Caremag, in Lacq, France, creating a strategic partnership to further advance Neo’s strategy of strengthening its rare earth magnetics supply chain across Europe. The partnership is expected to secure Neo’s access to Carester’s separated heavy rare earths to support production at Neo’s European sintered magnet facility, while providing Carester access to Neo’s recyclable magnet swarf and rare earth separation capacity. This partnership encompasses three core elements:

• Securing heavy rare earth supply for Neo’s magnet production. Neo will receive separated dysprosium and terbium oxides from Caremag, providing some of the critical heavy rare earth inputs needed for its European sintered magnet facility, which is expected to launch commercial production in the second half of 2026.
• Closing the loop on Neo’s magnet production scrap. Neo will send its manufacturing swarf, a byproduct of the sintered magnet manufacturing process, to Carester for recycling, and will receive the recovered neodymium-praseodymium, dysprosium, and terbium oxides in return, thus increasing its material utilization and keeping valuable rare earths within Neo’s supply chain.
• Expanding feedstock for European separation. Under a tolling arrangement, Neo will process Carester’s mixed rare earth carbonate at its Silmet facility in Estonia, retaining the light rare earth output while returning the heavy rare earths to Carester. Silmet is one of Europe’s few operating commercial rare earth separation facilities, with proven light rare earth separation capabilities.

“Carester is on track to bring online Caremag, its recycling and heavy rare earth separation facility in Lacq, France, which will represent the largest heavy rare earth separation and magnet recycling capacity in Europe, a pivotal step toward realizing Europe’s vision of a circular rare earth magnetics economy,” said Frédéric Carencotte, President of Carester. “Partnering with Neo, whose light rare earth separation expertise and manufacturing footprint are equally well established, ensures our heavy rare earth oxides and recycled materials go straight to work within a secure supply chain.”