Australian Strategic Materials (ASX:ASM) has achieved the first sale of heavy rare earth metals, consisting of 2kg of terbium and 2kg of dysprosium, to Neo Performance Materials (TSX:NEO) subsidiary Magnequench.
The rare earth metals, produced at the Korean Metals Plant, mark a milestone for the company’s ongoing development of its heavy rare earth capabilities. The rare earth metals have been shipped to Neo’s permanent magnet manufacturing facility in Estonia.
Australian Strategic, which has a market capitalisation of $108.8 million, has also completed the sale of 10 tonnes of neodymium-praseodymium metal to Neo for use in its permanent magnet manufacturing facilities.
In conjunction, Australian Strategic and Neo have signed a memorandum of understanding (MoU) to formalise a broader strategic partnership. The 12-month MoU is non-binding and serves as a framework for further discussions and potential definitive agreements.
The collaboration set out in the agreement aims to leverage the strength and expertise of both companies to ensure a reliable and secure supply of rare earth materials, as well as enhance technological innovation and contribute to the economic and strategic interest of the companies.
CEO Rowena Smith says combined with a global footprint that includes Canada, AStonia, Germany, Singapore, Thailand the US, Neo has a geographical reach and capability suite that is complementary to the company and aligns with its vision.
“The recent sales of terbium, dysprosium, and an additional 10 tonnes of neodymium-praseodymium metal further demonstrate the strength of our partnership and the growing demand for Australian Strategic Materials’ high-purity rare earth products – enabled by our in-house metallisation expertise,” Smith says.
Neo Performance Materials manufactures the building blocks of many modern technologies that enhance efficiency and sustainability.
Australian Strategic Materials is an emerging vertically integrated producer of critical metals for advancing manufacturing, clean energy, and defence and aerospace industries.
Write to Aaliyah Rogan at Mining.com.au
Images: Australian Strategic Materials
