Neo Performance Materials (NEO.TO) said Friday that it has commissioned its heavy rare earth element (HREE) solvent extraction small-scale production line at its Silmet facility in Estonia.
The line is operating at nameplate capacity, and efforts are now focused on delivering stable product purity before transitioning to routine production capacity, a statement said.
The operation has produced its first separated terbium and dysprosium process solutions, required for metal making, from mixed rare earth carbonate feedstock, with all processing completed in Europe, a significant a milestone, Neo 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," said chief executive Rahim Suleman.
"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."
Neo's heavy rare earth separation initiative complements its European permanent magnet facility in Estonia, which is advancing through customer qualification milestones, with commercial production expected to ramp later in 2026.
Neo shares closed up $0.76, to $22.60 on Thursday, on the Toronto Stock Exchange.