Critical minerals developer Australian Strategic Materials has reached a partnership deal with rare earth magnet manufacturer Noveon Magnetics.
Critical minerals developer Australian Strategic Materials has reached a partnership deal with rare earth magnet manufacturer Noveon Magnetics.
ASM signed the deal with US-based Noveon for the first sale of neodymium iron boron alloy, used in permanent magnets in electric vehicles and wind turbines, from its Korean Metals Plant.
The Korean Metals Plant, located south of Seoul, is in phase 1 of commissioning after it was opened in May 2022 following construction and installation activities.
Under the deal, ASM will sell and deliver 100 tonnes of neodymium iron boron alloy from its plant to Noveon in accordance with an agreed schedule until March 2024.
In a statement, ASM said the two parties intended to develop a strategic partnership relating to long-term offtake for rare earth materials that support magnet production.
ASM said they have agreed to use all reasonable endeavours to enter a long-term supply and purchasing agreement.
The announcement sent ASM shares up 22.06 per cent to trade at $1.245 at 1.37PM AWST.
Managing director Rowena Smith said ASM was delighted to announce the partnership and the first sale of neodymium iron boron alloy from its Korean Metals Plant.
“This is the result of much hard work and dedication from the ASM team including the successful commissioning of the strip alloy caster earlier this year,” she said.
“As we continue to work with Noveon, we look forward to ongoing discussions to meet Noveon’s supply requirements in line with their development.”
Noveron chief executive Scott Dunn said the company was set out to develop a superior rare earth magnet.
“It is an important part of our mission to establish a reliable, high-quality supply chain for neodymium iron boron alloy,” he said.
“We have been impressed with the achievement of ASM at the Korean Metals plant, and we look forward to growing our partnership with ASM.”
