Australian Strategic Materials builds momentum with rare earth sales from Korean facility to US and EU magnet-makers
Vertically integrated critical metals producer Australian Strategic Materials (ASX: ASM) has confirmed significant sales of its rare earth product to a number of key partners.
The neodymium and praseodymium (NdPr) metal and neodymium-iron-boron (NdFeB) deals involve the company’s unique facility in South Korea.
Australian Strategic’s 100%-owned Korean Metals Plant (KMP) is one of the few facilities outside of China capable of producing the in-demand rare earth materials.
Strengthening order book
“Our strengthening metal and alloy order book is the result of consistent and purposeful customer collaboration and enhanced technical know-how, combined with the increasing urgency for an alternative rare earth supply chain to meet global forecast demand,” chief executive officer Rowena Smith said.
“In recent months, Australian Strategic’s position as one of the leading ex-China producers of NdPr metal and NdFeB alloy has been cemented.”
“Having navigated rigorous validation processes with existing and potential customers – proving our capability and product quality – we are now in a position to leverage our growing experience and reputation in the industry.”
Emerging magnet-makers
Ms Smith added that the company is continuing to work with a number of other emerging magnet-makers in Korea, the US and the EU.
“As rare earth supply chains face increasing vulnerability due to China’s export restrictions, Australian Strategic is continuing to develop existing and potential customer relationships [and] positioned to deliver an alternative supply to the rest of the world,” Ms Smith said.
As part of its growth plans, Australian Strategic and Noveon Magnetics have agreed on a delivery schedule for the first 15 tonnes of NdFeB alloy under an existing 100t supply agreement.
Delivery of this order will commence in June 2025, with the balance to arrive during the second half of 2025.
Alternative supply chains
“Alloy from the KMP supports the fulfilment of the supply of US-made rare earth magnets, as part of efforts to strengthen alternative supply chains,” Ms Smith said.
“These shipments mark a key milestone in the commercialisation of alloy production from the KMP and the continued development of a strategic partnership with Noveon.”
The company also revealed it has received a purchase order from global magnetic alloys specialist Vacuumschmelze for the supply of 7.2t of NdFeB alloy across five different specifications.