May 22 (Reuters) - Neo Performance Materials ( NOPMF )

said on Thursday it has exited its China separation facilities,

as the Canadian rare earths company aims to reduce geopolitical

risk and price volatility while expanding in Europe and North

America.

The exit concludes a strategic review it launched last year.

The company said it sold its majority stakes in two Chinese

separation facilities, the value of which was not disclosed.

China controls the vast majority of global rare earth

processing, making the sector highly vulnerable to supply

disruptions and price swings tied to trade tensions or domestic

policy shifts.

The rare earths company also divested its gallium

trichloride business in Quapaw and closed the hydrometallurgy

portion of its Niobium and Tantalum business.

"The company is scaling its European magnet operations and

evaluating additional supporting capabilities, such as heavy

rare earth separations," Neo said in a statement.

Neo expects its permanent magnet facility in Europe to be

completed on time and on budget, and start commercial production

in 2026.