Canada-headquartered NioCorp Developments has signed an offtake term sheet with automotive group Stellantis, outlining the framework for a ten-year contract to supply neodymium-praseodymium oxide, dysprosium oxide, and terbium oxide from the proposed Elk Creek mine, in Nebraska.
The primary objective of the term sheet is to establish a definitive rare earth supply agreement that aligns with Stellantis’ commitment to building resilient supply chains and achieving carbon neutrality by 2038.
By partnering with NioCorp, Stellantis aims to secure a reliable source of these essential rare earth materials. The collaboration also expedites NioCorp’s journey towards commercial production of magnetic rare earth oxides in the US.
Final volumes will be set in a definitive agreement.
“Stellantis intends to lead the industry with the commitment to be carbon net zero by 2038 – a goal that requires innovation and a complete redefinition of our sourcing strategies,” said Stellantis chief purchasing and supply chain officer Maxime Picat.
“By working with partners like NioCorp, we are taking important steps, with the aim of decarbonising mobility and ensuring strategic supplies of raw materials necessary for the success of the company’s global electrification plans highlighted in our Dare Forward 2030 strategy.”