Australian Strategic Materials (ASX:ASM) inks long-term sales agreement with USA Rare Earth

• Australian Strategic Materials (ASM) inks a long-term sales agreement with USA Rare Earth for the supply of neodymium iron boron alloy
• The five-year binding framework agreement represents a key milestone for ASM’s subsidiary, ASM Korea Co
• The agreement strengthens ASM’s customer portfolio and strategic supply relationships with the US magnet production industry
• Alloy supply will begin in 2024
• ASM is up 8.02 per cent, trading at $1.75 at 2:25 pm AEST

Australian Strategic Materials (ASM) has inked a long-term sales agreement with USA Rare Earth (USARE) for the supply of neodymium iron boron (NdFeB) alloy.

The five-year binding framework agreement represents a key milestone for ASM’s subsidiary, ASM Korea Co.

The framework agreement sets up ASM’s growing customer base and reinforces its strategic supply relationships with the US magnet production industry through its Korean Metals Plant (KMP).

Under the agreement, the KMP will supply alloy to support USARE’s production ramp-up of high-performance rare earth magnets.

The supply of alloy is aimed to commence in 2024.

“USA Rare Earth’s magnet manufacturing capability and approach to the market makes them a perfect customer and partner for ASM.” ASM Managing Director Rowena Smith said

 “This long-term supply agreement demonstrates the growing demand and positive trajectory of the US rare earth magnet market as we increase our metal production output from our Korean Metals Plant.”

Both ASM and USARE are actively scaling up operations and developing an alternative rare earth and critical minerals supply chain to meet the forecasted growth in various sectors, including EVs, green energy, consumer electronics, defence, chipsets, semiconductors, and 5G technologies.

ASM was up 8.02 per cent, trading at $1.75 at 2:25 pm AEST.