Australian Strategic Materials (ASX:ASM) has announced its first sale of heavy rare earth metals, shipping 2kg of terbium and 2kg of dysprosium to Magnequench, a subsidiary of Neo Performance Materials (TSX:NEO). The rare earth metals, produced at ASM’s Korean Metals Plant, represent a key milestone in the company’s development of its heavy rare earth capabilities. The shipment has been delivered to Neo’s permanent magnet manufacturing facility in Estonia.
ASM, which currently has a market capitalisation of $108.8 million, also completed the sale of 10 tonnes of neodymium-praseodymium metal to Neo. This metal will be used in Neo’s permanent magnet manufacturing processes. In conjunction with these sales, ASM and Neo have signed a memorandum of understanding (MoU) to formalise a broader strategic partnership. The 12-month MoU is non-binding and provides a framework for further discussions and potential definitive agreements.
The collaboration outlined in the MoU aims to leverage the strengths of both companies to ensure a reliable and secure supply of rare earth materials. It also seeks to enhance technological innovation and contribute to the economic and strategic interests of both organisations. According to CEO Rowena Smith, Neo’s global footprint, which includes facilities in Canada, Estonia, Germany, Singapore, Thailand, and the US, complements ASM’s vision.
Smith stated that the recent sales of terbium, dysprosium, and neodymium-praseodymium demonstrate the strength of the partnership and the growing demand for ASM’s high-purity rare earth products. Australian Strategic Materials is an emerging vertically integrated producer of critical metals for advancing manufacturing, clean energy, and defence and aerospace industries. Neo Performance Materials manufactures the building blocks of many modern technologies that enhance efficiency and sustainability.
