Neo to sell Chinese rare earths business

Neo Performance Materials is selling nearly all its Chinese rare earth separation business to Shenghe Resources, a rare earth processor in China, for $30 million. Neo started a strategic review in June to simplify its business, and it recently sold a US gallium trichloride plant. Neo is shifting away from processing steps to focus on manufacturing rare earth magnets, which are used in electric motors. In August, the company Neo announced that its Estonian magnet factory would supply a European electric motor manufacturer starting in 2026.