Australian Strategic Materials strikes sales agreement for neodymium-iron-boron alloy with Noveon Magnetics

Critical metals specialist Australian Strategic Materials (ASX:ASM) has signed a deal to sell neodymium iron boron alloy (Nd-Fe-B) products from its Korean Metals Plant to US-based magnet maker Noveon Magnetics.

Under the agreement, Australian Strategic Materials will provide 100 tonnes of Nd-Fe-B alloy from the Korean Metals Plant, located in South Korea, to Noveon up to the end of March 2024. Additionally, both parties have agreed to a fixed price per tonne for this shipment, which was determined by reference to the ‘high-quality’ specification of the alloy.

Australian Strategic Materials reports any additional specifications will be priced separately according to a methodology to be agreed upon, depending on the rare earth content contained in the relevant alloy. The company says exact pricing will be negotiated by reference to the prevailing market price of the relevant oxide.

Australian Strategic Materials says it intends to develop a strategic partnership for long-term offtake regarding rare earth materials that support magnet production and has agreed to use all reasonable endeavours to enter into a long-term supply and purchasing agreement with Noveon.

Commenting on the agreement, Australian Strategic Materials Managing Director Rowena Smith says: “At ASM, we are delighted to announce the start of this strategic partnership with Noveon and the first sale of Nd-Fe-B 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.

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.”

Noveon Magnetics Chief Executive Officer (CEO) Scott Dunn also commented, saying: “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 Nd-Fe-B 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 Magnetics is a US-based rare earth magnet manufacturer with a ‘state-of-the-art’ manufacturing centre in San Marcos, Texas. The company was founded with the goal of developing a superior magnet to provide a cleaner, safer, and more efficient future.

Australian Strategic Materials is a Perth-based, vertically integrated critical metals producer that extracts, refines, and manufactures ‘high-purity’ metals, alloys, and powders for clean energy, electric vehicle, aerospace electronics, and communications applications.

The 2 pillars of the company’s vertically integrated materials business included the Dubbo Polymetallic Project in central western New South Wales, considered prospective for rare earths, zirconium, niobium, and hafnium; and the Korean Metals Plant in South Korea, where oxides are converted into ‘high-purity’ metals, alloys, and powders.

Images: Australian Strategic Materials
Written By Harry Mulholland
Hailing from the Central Coast region of NSW, Harry is a passionate journalist with a background in print, radio and ESG news. When not bashing away on his keyboard, he can be found brewing a coffee or playing with his dog.