Rainbow Rare Earths (LSE:RBW) has signed a memorandum of understanding with Neo Performance Materials covering a technical partnership and offtake arrangements for the Phalaborwa rare earths project in South Africa.
Under the proposed arrangement, Neo will act as technical partner for the project’s final solvent extraction separation circuit, which is intended to produce high-purity neodymium-praseodymium (NdPr) oxide and a mixed heavy rare earth carbonate.
Rainbow will receive access to Neo’s solvent extraction technology as part of the agreement.
Neo Secures Offtake Rights to Phalaborwa Production
In exchange for access to the technology, Rainbow will grant Neo offtake rights covering 40% of Phalaborwa’s NdPr production and 65% of its SEG+ heavy rare earth carbonate output.
Pricing under the offtake arrangements will be linked to market indices.
The agreement brings Neo’s rare earth separation technology and facilities into the development plans for Phalaborwa’s final separation circuit.
Rainbow Targets Phalaborwa Studies in 2026 and 2027
Rainbow plans to publish a pre-feasibility study for Phalaborwa during the fourth quarter of 2026, followed by completion of a definitive feasibility study in the first half of 2027.
The company is also progressing financing and permitting activities for the project and is considering a potential U.S. listing.
Phalaborwa and Uberaba Projects
Rainbow Rare Earths is developing the Phalaborwa project in South Africa and the Uberaba project in Brazil.
Both projects are focused on recovering rare earth elements from phosphogypsum, a by-product of fertiliser production.
Rainbow is targeting the production of critical rare earth materials for Western supply chains, including materials used in industrial, energy transition and defence applications.
Leave a Reply