TORONTO, Ontario — March 2, 2026 — Leads & Copy — Neo Performance Materials Inc. and Cyclic Materials Inc. have announced a collaboration to develop a circular rare earth value chain for magnetic materials, supporting the energy transition.
The non-binding memorandum of understanding (MOU) focuses on establishing a closed-loop, trans-Atlantic supply chain. Cyclic will recycle magnet production scrap and end-of-life magnet-bearing materials, with the recovered rare earth elements reintegrated into Neo’s alloy and magnet manufacturing.
This collaboration supports Neo’s European production sites and aligns with the EU Critical Raw Materials Act objectives, which aim to increase rare earth processing and recycling capacity for rare earth magnetics.
According to the Honourable Tim Hodgson, Minister of Energy and Natural Resources, Canada and its partners are collaborating to build secure and resilient critical mineral supply chains. Minister Hodgson added that the collaboration with companies like Neo Performance Materials and Cyclic Materials would deliver the minerals needed, and security for Canadians.
Under the framework, Neo intends to supply magnet production scrap from its European operations to Cyclic for recycling into mixed rare earth oxides. Cyclic also intends to supply mixed rare earth oxides and related products recycled from end-of-life and third-party magnet manufacturing scrap to Neo.
These Cyclic recycled products will have full traceability, contributing to the circular supply chain and serving as raw material inputs for Neo’s downstream processing and magnet manufacturing operations.
Rahim Suleman, President and CEO of Neo, stated that the MOU brings together complementary capabilities to advance circularity in the rare earth magnet supply. Suleman added that by combining Neo’s advanced magnet manufacturing platform with Cyclic’s recycling technology, they aim to deliver secure, traceable, and sustainable supply chains for their customers.
Ahmad Ghahreman, CEO and Founder of Cyclic Materials, said the collaboration reflects a shared commitment to advance circularity and resilience of trans-Atlantic rare earth supply chains. Ghahreman added that by integrating Cyclic’s recycling with Neo’s magnet manufacturing capabilities, they will enable a secure and traceable source of rare earth materials for North America and Europe.
The parties intend to explore joint closed-loop opportunities with OEM and Tier-1 partners, to enable improved traceability from end-of-life products through to new electric motor and clean technology applications.
The MOU is non-binding and serves as a framework for further technical and commercial evaluation. Any binding commitments would be subject to the negotiation and execution of definitive agreements.
Neo manufactures advanced industrial materials, including magnetic powders, rare earth magnets, specialty chemicals, metals, and alloys. Cyclic Materials, founded in 2021, focuses on recycling magnet-containing end-of-life products, with commercial-scale Spoke facility in Mesa, Arizona, and a Centre of Excellence with R&D facility and Hub hydrometallurgical site in Kingston, Ontario, with plans for a campus in South Carolina.
Source: Neo Performance Materials
