Neo Performance Materials (NPM) has sold a majority ownership of Jiangyin Jiahua Advanced Materials (JAMR) for US$25.6M and 100% ownership of Zibo Jiahua Advanced Material Resources (ZAMR) US$4.1M to Shenghe Resources.  

The two facilities provided NPM processing capability within China, processing both imported and domestically sourced feedstock. JAMR is focused on the production of heavy rare earth products, whilst ZAMR targeted light rare earth materials before its closure in Q2 2024. Under the sales agreement, NPM will retain a 9% stake in JAMR and retain sole distribution rights for non-China domestic sales of production from JAMR for five years.

Both JAMR and ZAMR have struggled in recent years with the continued consolidation of the Chinese domestic rare earth industry, increasing state government control and pushing out foreign control of rare earth assets. Increased consolidation and integration have seen both JAMR and ZAMR struggle to source rare earth feedstocks in recent years, limiting production and making it challenging to compete with Chinese state-owned integrated producers. Shenghe Resources has been increasing its footprint within the international rare earth industry in recent years, with purchases of equity in Peak Rare Earths, Vital Metals, MP Materials and several others, though its growing ownership of rare earth operations throughout the supply chain within China has equally expanded. Improved integration and state ownership will likely remove barriers in sourcing feedstocks for ZAMR and JAMR within China after ownership has been transferred.           

NPM will maintain a presence within the Chinese rare earth industry, holding full or partial ownership of nine companies (excluding ZAMR and JAMR) according to its 2023 Annual report. The subsidiaries include the NAMCO facility in Zibo, China, which produces rare earth-bearing catalyst materials for emissions control and was relocated and commissioned earlier in 2024. The relocation and expansion of the NAMCO facility in Zibo received funding from Export Development Canada back in 2022, via a US$75M loan agreement.