Neo Performance Materials has commissioned its heavy rare earth element (HREE) solvent extraction line – currently running at nameplate capacity – at the Silmet facility in Estonia.
The focus is on ensuring stable product purity as a precursor to standard production.
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The facility has produced its initial terbium and dysprosium solutions from mixed rare earth carbonate, with all processing completed in Europe.
This achievement confirms the technical and operational efficiency of the Silmet extraction line under continuous conditions, highlighting a key development in heavy rare earth separation in Europe.
Dysprosium and terbium are critical for use in high-performance permanent magnets in electric vehicle motors, robotics, wind turbines and industrial automation.
By developing this capability at Silmet, Neo aims to advance a secure European supply of these materials to support its expanding magnet manufacturing and broader supply chain diversification goals.
This development underlines Neo’s plan to enhance its role in rare earth magnetics and expand its processing capabilities within Europe.
Neo’s initiative for heavy rare earth separation aligns with its European Permanent Magnet facility in Estonia, which is progressing through customer qualification stages, with plans to ramp up commercial production in 2026.
Neo Performance Materials president and CEO Rahim Suleman said: “The successful launch of our heavy rare earth separation in Estonia represents a critical step in Neo’s strategy to build the most vertically integrated rare earth magnetics value chain in Europe.
“Our rare earth value chain now spans both light and heavy rare earth processing, enabling the separation and finishing of select elements into value-added, engineered end-use applications.
“This achievement enables Neo to provide secure, traceable and high-quality heavy rare earth materials to our European permanent magnet facility, supporting our customers’ most demanding applications.”
In April 2025, Neo signed a non-binding memorandum of understanding with Globe Metals & Mining for the offtake of up to 150t per year of niobium pentoxide from phase one of the Kanyika niobium project in Malawi.
