07:49 AM EDT, 05/22/2025 (MT Newswires) -- Neo Performance Materials ( NOPMF ) on Thursday said it is no longer pursuing a sale of the company and will instead accelerate its current strategic plan to become a major supplier of rare earth permanent magnets and critical materials.

Neo said a special committee's strategic review concluded that a sale was risky due to the current geopolitical environment, and pursuing its strategic plan would be "transformative" for the company.

"As the special committee evaluated a number of alternatives in the course of the strategic review, it concluded that there were opportunities for value creation through the accelerated execution of Neo's strategic plan and that the deal completion risks associated with an en bloc sale were significant given current geopolitical dynamics," the board said.

The company said its permanent magnet facility in Europe is expected to start commercial production in 2026, while also executing numerous off-take agreements with upstream providers.

Neo added that it has started engineering and design for a pilot heavy rare earth separation line in Europe.

During the strategic review process, Neo said it completed sales of its majority stakes in non-core Chinese separation facility assets, while divesting its Gallium Trichloride business in Quapaw and closing the hydrometallurgy portion of its niobium and tantalum business.

"The board is confident in Neo's strategic direction and the management team's ability to unlock value for all shareholders," the board added.

Neo's share price fell 1.7% on Wednesday to $9.97 on the TSX.