Published by Global Banking & Finance Review®
Posted on May 22, 2025
1 min readLast updated: January 23, 2026
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Neo Performance Materials exits China to reduce risks, focusing on European expansion with a new magnet facility by 2026.
(Reuters) -Neo Performance Materials said on Thursday it has exited its China separation facilities, as the Canadian rare earths company aims to reduce geopolitical risk and price volatility while expanding in Europe and North America.
The exit concludes a strategic review it launched last year.
The company said it sold its majority stakes in two Chinese separation facilities, the value of which was not disclosed.
China controls the vast majority of global rare earth processing, making the sector highly vulnerable to supply disruptions and price swings tied to trade tensions or domestic policy shifts.
The rare earths company also divested its gallium trichloride business in Quapaw and closed the hydrometallurgy portion of its Niobium and Tantalum business.
"The company is scaling its European magnet operations and evaluating additional supporting capabilities, such as heavy rare earth separations," Neo said in a statement.
Neo expects its permanent magnet facility in Europe to be completed on time and on budget, and start commercial production in 2026.
(Reporting by Katha Kalia in Bengaluru; Editing by Leroy Leo)
Neo Performance Materials announced that it has exited its China separation facilities to reduce geopolitical risk and price volatility.
The exit from China concludes a strategic review that Neo Performance Materials launched last year.
The company sold its majority stakes in two Chinese separation facilities and also divested its gallium trichloride business in Quapaw.
Neo Performance Materials is scaling its European magnet operations and expects its permanent magnet facility in Europe to start commercial production in 2026.
The rare earth sector is highly vulnerable to supply disruptions and price swings due to China's control over global rare earth processing.
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