Victory and Sumitomo advance rare earth partnership

Victory Metals (ASX: VTM) has entered into a non-binding letter of intent (LOI) with Sumitomo Corporation to advance offtake and strategic cooperation for the North Stanmore heavy rare earth project.

The agreement outlines a pathway for pilot scale product testing and early sales through Sumitomo, to be commenced in 2027 ahead of full commercial production. It also establishes the intention of establishing a long-term offtake relationship once Victory starts production at North Stanmore.

Under the LOI, Victory will supply up to 30% of annual production, or 1000tpa of mixed rare earths carbonate (MREC) including up to 50t of dysprosium and terbium product for an initial five-year term.

The December 2024 MOU, which expires on October 31, 2025, represented the first stage of engagement. Entering into an LOI is the expected and critical next step in such transactions.

Victory Metals chief executive and executive director Brendan Clark comments on the agreement.

“This is a important and exciting milestone for Victory,” he said.

“To be advancing from an MOU into a formal LOI with Sumitomo Corporation, one of the world’s most respected trading giants validates the strategic importance of the North Stanmore Project on the global stage.

“Together, we have a shared vision to establish a secure, ethical, Western aligned supply chain of heavy rare earths, critical for renewable energy, defence and advanced technologies.

“With Sumitomo’s global marketing reach and Victory’s world-class resource, this partnership positions Victory as a flagship Australian supplier into Japan, a nation leading the world in rare earth processing and innovation outside of China. “