USA Rare Earth, LLC (USARE), a vertically integrated magnet technology company, announced today that it signed a multi-year supply agreement with Australian Strategic Materials Ltd. (ASX: ASM) (ASM), a producer of critical metals for advanced and clean technologies. This agreement secures rare earth metals that will be used as USARE ramps up production of high-performance rare earth magnets. Rare earth magnets are required for technologies ranging from cell phones and medical devices to EVs and numerous defense applications. USA Rare Earth is working to bring the production of these high-performance magnets back to America, supporting the future state of energy, mobility, and national security.
“Having a supply agreement in place with ASM plays a critical role in delivering on our vision of achieving magnet production in 2024,” said Tom Schneberger, CEO of USA Rare Earth. “ASM provides us with predictable access to a non-Chinese supply of rare earth metals, which allows us to ramp-up our initial production and accelerate our goal of generating revenue, while we continue to construct our own mine.”
Mr. Schneberger continued, “We are very impressed with the metal making capability that ASM established in Korea and look forward to a long-term partnership as we diversify the rare earth magnet supply chain.”
On announcing the framework agreement, ASM Managing Director Ms. Rowena Smith, said, “USA Rare Earth’s magnet manufacturing capability and approach to market makes them a perfect customer and partner for ASM. As we continue to increase our metal production output from our Korean Metals Plant, this long-term supply agreement demonstrates the growing demand and positive trajectory of the US rare earth magnet market.”
Both companies are focused on scaling up their respective operations with no reliance on China. This supply agreement will secure the majority of USARE’s metal and alloy requirements for magnet production until it begins using materials from its Round Top reserve in Sierra Blanca, Texas.
