Neo Performance signs MOU with Cyclic Materials

Executive Summary

• Neo Performance Materials Inc. and Cyclic Materials Inc. have signed a non-binding Memorandum of Understanding (MOU) to establish a circular, trans-Atlantic supply chain for rare earth magnetic materials.
• The collaboration focuses on a closed-loop system where Neo supplies magnet production scrap from its European operations to Cyclic for recycling into mixed rare earth oxides, which are then reintegrated into Neo’s manufacturing processes.
• The partnership aims to support the global energy transition by providing secure, traceable, and sustainable rare earth supplies, aligning with EU Critical Raw Materials Act objectives and exploring joint opportunities with OEM and Tier 1 partners.

Key Details

• Parties Involved: Neo Performance Materials Inc. (Neo) and Cyclic Materials Inc. (Cyclic).
• Agreement Type: Non-binding Memorandum of Understanding (MOU).
• Core Objective: Development of a circular, resilient, and traceable rare earth value chain for magnetic materials.
• Operational Framework:
  • Neo will supply magnet production scrap from its European operations to Cyclic.
  • Cyclic will recycle this scrap into mixed rare earth oxides.
  • Cyclic will supply these recycled mixed rare earth oxides and related products back to Neo.
  • Recycled products will have full traceability and serve as raw material inputs for Neo’s downstream processing and magnet manufacturing.
• Strategic Alignment: Supports Neo’s production sites in Europe and aligns with the EU Critical Raw Materials Act objectives to increase rare earth processing and recycling capacity.
• Future Scope: Parties intend to explore joint closed-loop opportunities with Original Equipment Manufacturers (OEM) and Tier 1 partners to improve traceability from end-of-life products to new electric motor and clean technology applications.
• Legal Status: The MOU is non-binding; any binding commitments are subject to the negotiation and execution of definitive agreements.

Notable Quotes

• Hon. Tim Hodgson, Minister of Energy and Natural Resources: "Canada and our partners are working together to build the secure and resilient critical mineral supply chains that our economies and industries rely on... By working with companies like Neo Performance Materials and Cyclic Materials, we are helping deliver the minerals the world needs and the prosperity and security Canadians deserve."
• Rahim Suleman, President and CEO of Neo: "This MOU brings together complementary capabilities to advance circularity in rare earth magnet supply... By combining Neo's advanced magnet manufacturing platform with Cyclic's innovative recycling technology, we aim to help deliver secure, traceable and sustainable supply chains for our customers."
• Ahmad Ghahreman, CEO and Founder of Cyclic Materials: "This collaboration reflects a shared commitment to advance circularity and resilience of trans-Atlantic rare earth supply chains... By integrating Cyclic's innovative recycling with Neo's established magnet manufacturing capabilities, we will enable a secure and traceable source of rare earth materials for North America and Europe."