Neo prepares supply chain overhaul at Estonia’s rare earths plant

Neo Performance Materials is preparing to change the raw material supply arrangements at its Silmet rare earths facility in Sillamäe, Estonia, as the company advances plans to modernise its European separation operations.

In an update released on 13 October, Neo said the transition to new suppliers would involve slowing production and periodically shutting down the existing light rare earth separation line. The changes form part of preparations for a larger investment project intended to expand the plant’s processing capabilities.

The Sillamäe facility has been designated a strategic project under the EU Critical Raw Materials Act, reflecting its role in developing European rare earth processing capacity.

Neo expects the planned modernisation to triple separation capacity, subject to a final investment decision. The company has not disclosed the investment amount or a detailed implementation timetable.