Neo Performance Materials (NEO) Clean Energy Metals Virtual Investor Conference 2025 summary

Industry and geopolitical context

• China imposed export restrictions on heavy rare earths and permanent magnets in April, causing global supply chain concerns for the U.S. and Europe.

• Neo's magnets were highlighted at the G7 Summit by EU and Canadian leaders, underscoring their strategic importance.

• 93% of the world's permanent magnets are produced in China, creating a need for geographic diversification and secure supply chains.

• Governments in the U.S. and Europe are enacting policies and investments to localize and secure critical materials supply.

• Demand for permanent magnets outside China is expected to far exceed current non-Chinese capacity by 2025.

Business model and operations

• Operates three business units: Chemicals & Oxides (rare earth separation and value-added products), Magnequench (permanent magnets), and Rare Metals (hafnium, gallium).

• Revenue is geographically and segmentally diversified, with a strong base business and healthy cash flow.

• Not a mining company; sources ore from mines and focuses on separation and downstream processing.

• Has a global manufacturing footprint, including facilities in Canada, the U.K., Germany, Estonia, China, and Thailand.

• Deep R&D capabilities enable commercialization of new products for diverse end markets.

Growth strategy and major projects

• Opened a new emissions catalyst control plant in China in Q4 last year, targeting 10% annual growth in that segment.

• European permanent magnet facility broke ground in 2023, with grand opening set for September and commercial production in 2026.

• Phase one of the European facility will have 2,000 metric tons capacity, with plans to expand to 5,000 and eventually 20,000 metric tons globally.

• Secured major awards from Tier 1 automotive customers and produced first samples within two months of commissioning.

• Received EU Just Transition Fund grant covering 23% of eligible capital costs for the European facility.