Neo Performance Materials Enters Rare Earths Partnership with France's Carester

09:27 AM EDT, 08/31/2026 (MT Newswires) -- Neo Performance Materials (NEO.TO) on Monday said it entered into a binding term sheet to secure heavy rare earths supply from France-based Carester. Under the terms, Neo will use separated dysprosium and terbium oxides from the company's Caremaq recycling and heavy rare earth separation facility as inputs needed for Neo's European sintered magnet facility, which could begin commercial production in the second half. Neo will also provide Carester with manufacturing swarf, a byproduct of the sintered magnet manufacturing process, to Carester for recycling. In return, Neo will receive the recovered neodymium-praseodymium, dysprosium, and terbium oxides. In addition, Neo will also process Carester's mixed rare earth carbonate at its Silmet facility in Estonia. The company's shares closed down C$1.01, or 3%, to C$32.45 Friday on the Toronto Stock Exchange.