Neo Performance Materials is teaming up with French rare earth technology company Carester in a strategic partnership aimed at securing critical materials for Europe’s growing rare earth magnet industry.
The companies have signed a binding term sheet that will link Carester’s planned Caremag recycling and heavy rare earth separation facility in Lacq, France, with Neo’s European magnet manufacturing and rare earth separation operations.
The partnership is designed to strengthen Neo’s access to critical heavy rare earths while creating a recycling loop for magnet manufacturing waste and expanding feedstock for rare earth separation in Europe.
The agreement covers three key areas:
Securing heavy rare earths for Neo’s magnets: Neo will receive separated dysprosium and terbium oxides from Caremag for use in its European sintered magnet facility, which is expected to begin commercial production in the second half of 2026.
Recycling magnet manufacturing waste: Neo will send manufacturing swarf, a byproduct of sintered magnet production, to Carester for recycling. In return, Neo will receive recovered neodymium-praseodymium, dysprosium and terbium oxides, helping keep valuable rare earths within its supply chain.
Boosting European separation capacity: Under a tolling arrangement, Neo will process Carester’s mixed rare earth carbonate at its Silmet facility in Estonia. Neo will retain 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 and has established capabilities in separating light rare earths.
“This partnership with Carester further advances Neo’s strategy to build an industry-leading, secure rare earth magnetics supply chain in Europe,” said Rahim Suleman, President and CEO of Neo.
“Few companies can match Carester’s specialized expertise in heavy rare earth separation and recycling and pairing that strength with our own separation and magnet manufacturing capabilities in Europe gives our customers the kind of secure, diversified supply chain that critical minerals and advanced materials markets increasingly demand.”
Carester is developing Caremag as a major European hub for heavy rare earth separation and magnet recycling, positioning the project as a key piece of Europe’s effort to build a more circular and resilient rare earth supply chain.
“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.”
The partnership comes as European manufacturers seek to reduce reliance on concentrated global sources of critical rare earth materials and establish more secure regional supply chains for permanent magnets, which are essential to industries including electric vehicles, renewable energy and advanced manufacturing.
