Australian Strategic Materials (ASX:ASM) secure an alloy alliance
August 3, 2023Australian Strategic Materials’ fully owned subsidiary has struck a binding five-year pact with USA Rare Earth to supply neodymium iron boron alloy from its Korean Metals Plant to support the production ramp-up of high-performance rare earth magnets within the United States.
The company’s new vertically integrated sales partner is poised to become the United States’ leading domestic supplier of rare earth magnets and heavy rare earth elements required for critical industries, and the accord enhances ASM’s customer portfolio and its strategic relationship with US industry.
ASM Managing Director Rowena Smith said USARE’s manufacturing capabilities and approach to market combined for a perfect customer and partner.
“As we continue to increase our metal production output from our Korean Metals Plant, this long-term supply agreement demonstrates the growing demand and positive trajectory of the US rare earth magnet market,” Ms Smith said.
USA Rare Earth Chief Executive Tom Schneberger said that having a deal in place played a critical role in delivering on his company’s vision for magnet production next year.
“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,” Mr Schneberger said.
“We are very impressed with the metal making capability that ASM established in Korea and look forward to a long-term partnership as we diversify the rare earth magnet supply chain.”
Critical supply
Both companies are ramping up operations to deliver critical supply into the fast-growing neodymium magnet market expected to grow at a CAGR of 7.5 per cent through to 2040, in tune building demand of the contained rare earth elements.
China has already restricted exports of gallium and germanium as it weaponises its rare earth dominance over other nations, making securing supply from outside its influence a pressing geopolitical issue – and a lucrative one for allies and trading partners of the United States and its industrial might.
The opening of the Korean Metals Plant
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