Recognising its key role in the supply of value-added critical metals from its Korean Metals Plant, Australian Strategic Materials Ltd (ASX:ASM) has formed a strategic partnership with US-based rare earth magnet manufacturer Noveon Magnetics Inc.
A new agreement will see ASM sell 100 tonnes of neodymium iron boron (NdFeB) alloy from the Korean plant to Noveon.
The alloy will be delivered to Noveon’s state-of-the-art manufacturing centre in San Marcos, Texas, in accordance with an agreed schedule during the period up to end of March 2024.
Growing partnership
This is the first key step toward developing a strategic partnership relating to long-term offtake for rare earth materials supporting magnet production.
Noveon and ASM have agreed to use all reasonable endeavours to enter into a long-term supply and purchasing agreement.
ASM managing director Rowena Smith said: “At ASM we are delighted to announce the start of this strategic partnership with Noveon and the first sale of NdFeB alloy from our 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.”
“As we continue to work with Noveon, we look forward to ongoing discussions to meet Noveon’s supply requirements in line with their development.”
Payment terms
The parties have agreed a fixed price per tonne for this shipment of NdFeB alloy, determined by reference to the high-quality specification of the alloy.
Any additional specifications, including any that might be supplied under future arrangements, will be priced separately according to a methodology to be agreed, depending on the rare earth content contained in the relevant alloy.
The exact pricing will be negotiated by reference to the prevailing market price of the relevant oxide.
“Impressed with ASM”
Noveon CEO Scott Dunn said: “At Noveon, we 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 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.”
Noveon was founded with the goal of developing a superior magnet to change the world and provide a cleaner, safer and more efficient future.