First sale of heavy rare earths for ASM

Australian Strategic Materials (ASX: ASM) has sold 2kg of terbium metal and 2 kg of dysprosium metal to Magnequench as the company establishes a resilient and dependable supply chain outside of China.

These heavy rare earth metals were produced at ASM’s Korean Metals Plant, marking a significant milestone in the company’s ongoing development of its heavy rare earth capabilities, and shipped to Neo Performance Materials’ permanent magnet manufacturing facility in Estonia.

In addition to this inaugural heavy rare earth metals sale, ASM has also completed the sale of 10t of neodymium-praseodymium metal to Neo for use in their permanent magnet manufacturing facilities.

This follows the successful delivery of 19t of neodymium-praseodymium metal previously supplied, further demonstrating the growing strength of the relationship between ASM and Neo.

In parallel, ASM has signed a memorandum of understanding (MOU) with Neo to formalise a broader strategic partnership.

The collaboration set out in the MOU aims to leverage the strengths and expertise of both ASM and Neo to ensure a reliable and secure supply of rare earth materials, enhance technological innovation and contribute to the economic and strategic interests of both parties.

ASM managing director and chief executive Rowena Smith says Neo is an established leader in the production of rare earth magnetic powders and magnets, specialty chemicals, metals and alloys.

“Combined with a global footprint that includes Canada, Estonia, Germany, Singapore, Thailand and the US, Neo has a geographical reach and capability suite that is highly complementary to ASM and aligns with our vision of establishing secure, diversified and sustainable critical materials supply chains,” she said.

“The recent sales of terbium, dysprosium and an additional 10t of neodymium-praseodymium metal further demonstrate the strength of our partnership and the growing demand for ASM’s high-purity rare earth products – enabled by our in-house metallisation expertise.

“The geopolitical narrative surrounding rare earths and critical minerals continues to intensify, underscored by initiatives such as the recent US Department of Defense public-private partnership with MP Materials.

“This landmark partnership highlights the growing recognition of the need for secure, Western supply chains in critical materials.

“The industry is undergoing rapid transformation, driven by strategic partnerships and surging demand across key sectors.

“Our collaborative partnership with Neo is designed to navigate and capitalise on these global opportunities, building on the momentum of recent developments.

“ASM’s unique position as a supplier of critical materials — particularly heavy rare earth metals — places it at the forefront of a rare earth magnet supply chain that is not only expanding but evolving to a more resilient and secure future.

“Our collaboration with Neo is built on a strong foundation, and we’re excited to take the next step together through this partnership. Establishing an alternative mine to magnet rare earth supply chain is a significant challenge and strategic partnerships are critical in achieving this objective.

“ASM is looking forward to working closely with the team at Neo to achieve our shared goals.”

Neo Magnequench executive vice president Greg Kroll says the partnership with ASM is an important step toward building diversified rare earth supply chains, particularly for critical heavy rare earth elements like terbium and dysprosium.

“ASM’s ability to produce high-purity rare earth metals using its in-house expertise aligns with Neo’s commitment to sourcing materials from trusted, innovative partners,” he said.

“We look forward to deepening our collaboration as global demand for these essential materials continues to grow.”