Neo Performance Materials Partners with Carester to Advance Its European Rare Earth Supply Chain Multi-year agreement secures heavy rare earth oxides for Neo’s magnet manufacturing in exchange for recycled scrap processing and separation feedstock supply
NEWS
Neo Performance Materials Partners with Carester to Advance Its
European Rare Earth Supply Chain
Multi-year agreement secures heavy rare earth oxides for Neo’s magnet manufacturing in
exchange for recycled scrap processing and separation feedstock supply
TORONTO, Canada, August 31, 2026 – Neo Performance Materials Inc. ( “Neo”) (TSX: NEO;
OTCQX: NOPMF) today announced that it has entered into a binding term sheet with Carester SAS
(“Carester”), 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.
“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 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.”
About Neo Performance Materials
Neo manufactures the building blocks of many modern technologies that enhance efficiency and
sustainability. Neo ’s advanced industrial materials – magnetic powders, rare earth magnets, magnetic
assemblies, specialty chemicals, metals, and alloys – are critical to the performance of many everyday
products and emerging technologies. Neo’s products fast-forward technologies for the net-zero transition. The
business of Neo is organized along three segments: Magnequench, Chemicals & Oxides and Rare Metals. Neo
is headquartered in Toronto, Ontario, Canada; with corporate offices in Greenwood Village, Colorado, United
States; Singapore; and Beijing, China. Neo has a global platform that includes manufacturing facilities located
in Canada, Estonia, China, Germany, Thailand and the United Kingdom, as well as a dedicated research and
development centre in Singapore.
For more information, please visit www.neomaterials.com.
Cautionary Statements Regarding Forward-Looking Statements
This news release may contain “forward-looking information” within the meaning of applicable Canadian
securities legislation. Generally, but not always, forward-looking information and statements can be identified
by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”,
“intends”, “anticipates”, or “believes” or the negative connotation thereof or variations of such words and
phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”,
“occur” or “be achieved” or the negative connotation thereof. Specific forward -looking statements in this
news release include, but are not limited to, the launch of the new initiatives and negotiation and execution of
definitive agreements and other matters relating thereto. In making the forward -looking information in this
news release, the Company has applied certain factors and assumptions that are based on its current beliefs as
well as assumptions made by and information currently available to the Company. Although the Compa ny
considers these assumptions to be reasonable based on information currently available to it, they may prove
to be incorrect, and the forward-looking information in this release are subject to numerous risks, uncertainties
and other factors that may caus e future results to differ materially from those expressed or implied in such
forward-looking information. There are many risk factors associated with the launch and operations of the
new project platform. A number of factors could cause actual results to differ materially from those
anticipated by the Company, including but not limited to the risks and uncertainties inherent in the nature of
operations including the risks of a material adverse change in th e Company’s assets or revenues, or risks of
unknown liabilities that may arise.
Readers are cautioned not to place undue reliance on forward -looking information. The Company does not
intend, and expressly disclaims any intention or obligation to, update or revise any forward -looking
information whether as a result of new information, future events or otherwise, except as required by law.
For more information on Neo, investors should review Neo ’s continuous disclosure filings that are available
under Neo’s profile at www.sedarplus.ca.
Information Contact:
Investor Requests:
Jim Fitzpatrick
SVP, Investor Relations & Communications
+1 (416) 367-8588 ext. 7336
Media Requests:
Vasileios Tsianos
SVP, Corporate Development
+1 (416) 367-8588 ext. 7335