TSX-listed Neo Performance Materials has successfully commissioned a small-scale heavy rare earth element (HREE) solvent extraction production line at its Silmet facility, in Estonia.

The solvent extraction line is operating at nameplate capacity, with efforts now focused on delivering stable product purity prior to transitioning to routine production capacity.

The operation has produced its first separated terbium and dysprosium process solutions, which are pre-cursor products for metal making, from mixed rare earth carbonate feedstock, with all processing completed entirely in Europe.

This achievement validates the technical robustness and operational reliability of the Silmet HREE solvent extraction line under continuous operating conditions and marks a significant milestone in establishing advanced heavy rare earth separation capability in Europe.

Dysprosium and terbium are essential inputs for high-performance sintered rare earth permanent magnets used in robotics, electric vehicle traction motors, wind turbines, and industrial automation applications.

By developing this separation capability at Silmet, Neo is advancing a secure, Europe-based supply of these critical materials to support its growing magnet manufacturing operations and to serve the broader strategic objectives of supply chain diversification.

"The successful launch of our heavy rare earth separation at Estonia represents a critical step in Neo's strategy to build the most vertically integrated rare earth magnetics value chain in Europe," says Neo president and CEO Rahim Suleman.

He adds that the company’s 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 customers' most demanding applications.

“The plant commissioning reflects Neo's commitment to build on its leadership in rare earth magnetics and critical minerals and to expand its European processing capabilities,” Suleman notes.

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 up later in 2026.