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ASM makes a deal with USA Rare Earth

3rd August 2023

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Australian Strategic Materials (ASM) has signed a five-year sales and tolling framework agreement with US-based USA Rare Earth for the supply of neodymium iron boron (NdFeB) alloy.

First supply of NdFeB from ASM’s Korean metals plant (KMP) is expected in 2024, and the framework agreement provides for the supply of 60% of USA Rare Earth’s NdFeB alloy demand for its Stillwater facility, in Oklahoma.

“USA Rare Earth’s magnet manufacturing capability and approach to market makes them a perfect customer and partner for ASM. As we continue to increase our metal production output from our KMP, this long-term supply agreement demonstrates the growing demand and positive trajectory of the US rare earth magnet market,” said ASM MD Rowena Smith.

KMP was officially opened last year, and will produce critical metals and alloys to customer specifications, using ASM’s patented, energy efficient metallisation process. The initial focus will be on NdFeB and titanium alloy.

“Having a supply agreement in place with ASM plays a critical role in delivering on our vision of achieving magnet production in 2024,” said USA Rare Earth CEO Tom Schneberger.

“ASM provides us with predictable access to a non-Chinese supply of rare earth metals, which allows us to ramp up our initial production and accelerate our goal of generating revenue, while we continue to construct our own mine.”

Edited by Creamer Media Reporter

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