09:00 AM EDT, 04/01/2025 (MT Newswires) -- Neo Performance Materials ( NOPMF ) said on Tuesday that it completed the sale of majority stakes in two Chinese rare earth separation companies for a total of US$28 million.

The company sold an 86% stake in Jiangyin Jiahua Advanced Material Resources (JAMR) for US$24.6 million in cash to an affiliate of Shenghe Resources Holding and also sold an 88% stake in Zibo Jiahua Advanced Material Resources (ZAMR) for US$3.4 million.

Neo, which said the transactions are part of its efforts to streamline its business globally and optimize its asset portfolio to support long-term growth, retained 9% of JAMR and 10% of ZAMR. Neo also signed an agreement for an exclusive right to distribute JAMR's heavy rare earth products outside of China for an initial term of five years.

"Shenghe's established global sourcing platform allows for continued growth of JAMR and ZAMR while we shift Neo's focus to downstream high-margin products," said Rahim Suleman, Neo's president and CEO.