Integrated rare earths player Australian Strategic Materials has secured a US buyer for neodymium iron boron alloy to be produced at its Korean Metals Plant.
The WA-based company said the deal marked the start of a strategic partnership with rare earth magnet manufacturer Noveon Magnetics, which will take 100 tonnes of NdFeB alloy sourced from its flagship Dubbo project in NSW.
It was also the first sale of NdFeB from the Korean Metals Plant.
Texas-based Noveon’s EcoFlux magnets are used in the clean energy, oil and gas, automotive, aerospace, defence, automation and medical industries.
The fixed price deal covers delivery schedule during the period up to end of March 2024 but leaves room for different prices depending on additional specifications for the alloy.
“The parties intend to develop a strategic partnership relating to long-term offtake for rare earth materials supporting magnet production, and they have agreed to use all reasonable endeavours to enter into a long term supply and purchasing agreement,” AMS said on Tuesday.
Noveon chief executive Scott Dunn said it was vital for the company to establish a reliable, high-quality supply chain for NdFeB alloy.
“We have been impressed with the achievements of ASM at the Korean Metals Plant, and we look forward to growing our partnership with ASM,” Mr Scott said.
Shares inAMS jumped almost 7 per cent in early trade to $1.09.