Australian Strategic Materials (ASM) announced the further sale of 60 tonnes of high-purity neodymium iron boron (NdFeB) alloy to Noveon Magnetics, under its existing 100-tonne supply contract.
According to ASM, not only does the sale represent a large portion of the remaining volume to fulfil the contracted supply, but it also showcases a “deepening” commercial relationship between the companies.
ASM managing director and chief executive officer Rowena Smith said that the follow-up sale is a “strong endorsement” of the company’s capability to deliver high-quality, specification-driven products to global customers.
“It reflects the growing momentum in the market and the increasing demand for reliable, transparent supply chains for critical materials,” Smith said.
“We are proud to support Noveon’s mission to produce magnets in the US and to contribute to the broader effort to build resilient supply chains.”
This support, Smith said, is geared towards Noveon’s production of US-made permanent magnets, which are seen as critical to the development of secure, sovereign supply chains for defence, energy technologies, and electric vehicle applications, among others.
Noveon, as the first operational manufacturer of sintered NdFeB rare earth magnets in the US, recently announced magnet supply agreements with Nidec Motor Corporation, General Motors, and global tech leader ABB.
“This sale also reinforces ASM’s strategic intent to replicate its Korean metals plant’s manufacturing capability in the US, with feasibility and planning work already underway,” Smith said.
“The growing volume of commercial sales, such as this one, provides a strong foundation for the development of a US-based facility, which would further strengthen ASM’s position as one of the very few non-China suppliers of critical metals and alloys.”
In light of the sale, Smith also added that the Korean metals plant’s production continues to ramp up, and that ASM is now fully funded to expand the plant to a production capacity of 3600 tonnes per annum of NdFeB alloy.
“The plant is a cornerstone of ASM’s mine to metals strategy to provide solutions for critical materials, from resource to refined product,” Smith said.
The company said it is looking forward to continuing its partnership with Noveon and expanding its role in the global supply chain for rare earth and critical metal alloys.
Looking ahead, both parties are discussing a potential long-term agreement for the continued supply of the NdFeB alloy.
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