Neo Performance Materials exits separation facilities in China
May 22 (Reuters) - Neo Performance Materials NEO.TO 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.
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