Neo opens emissions control catalysts facility in China

Canadian rare earths firm Neo Performance Materials Inc. has opened its new Neo Jia Hua Advanced Materials (Zibo) Co Ltd facility, a world-class emissions control catalysts production plant in Zibo, China.

The new facility is a modernisation and upgrade of its prior catalyst plant in Zibo, with expanded capacity, improved operating efficiencies, and advanced processing technology.

“The relocation and modernisation enables Neo to continue to service global automotive supply chains to meet more stringent emissions requirements across hybrid vehicle and internal combustion engine platforms. This investment enables Namco to meet increased customer demand and maintain Neo’s position as one of the top three global producers of rare earth compounds for environmental and automotive emissions control catalysts. These innovative and advanced technologies play a crucial role in the clean energy transition, and we look forward to continued success in expanding our world-class product portfolio,” said Rahim Suleman, President/CEO of Neo.

Customer requalification is underway, with four of Neo’s five major customers already completing their product qualification process for some of their key product lines. Pending customer approval, it is currently completing final commissioning of its facility and is expected to achieve full production capacity by the end of 2024.

As of June 2024, the company has invested US$46.4 million in the facility’s relocation, upgrade, and modernisation. The company updated its initial project budget to US$70 million, a US$5 million savings. The remaining investment is expected to be made through early 2025 as the final commissioning milestone payments and exterior work are completed.

The company is a top three global producer of specialty rare earth compounds for environmental and automotive emissions control catalysts and is positioned to benefit from hybrid and ICE vehicle platforms.