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TAMPA, 4 August 2023: USA Rare Earth LLC (USARE), a leading magnet technology company, has announced a significant milestone with the signing of a multi-year supply agreement with Australian Strategic Materials Ltd (ASM).
ASM is a renowned producer of critical metals used in advanced and clean technologies. This agreement is crucial as it ensures a stable supply of rare earth metals for USARE’s high-performance rare earth magnets production. These magnets are essential for a wide range of technologies, including cell phones, medical devices, electric vehicles (EVs), and various defense applications. By securing a reliable supply, USA Rare Earth is taking significant strides towards revitalizing magnet production in the United States, which in turn supports the country’s energy, mobility, and national security goals.
Supporting USARE’s Vision
USARE’s CEO, Tom Schneberger, emphasized the importance of the agreement with ASM in achieving their vision of launching magnet production in 2024. With this collaboration, USA Rare Earth gains consistent access to a non-Chinese source of rare earth metals, allowing them to accelerate initial production and generate revenue while they continue to develop their own mine. Schneberger also expressed admiration for ASM’s metal-making capabilities established in Korea, expressing excitement about a long-term partnership that will diversify the rare earth magnet supply chain.
ASM’s Perspective
ASM’s Managing Director, Rowena Smith, lauded USA Rare Earth’s magnet manufacturing capabilities and market approach, viewing them as an ideal customer and partner for ASM. She highlighted the increasing demand and positive trajectory of the US rare earth magnet market, signaling a promising outlook for both companies. As ASM continues to boost metal production output from its Korean Metals Plant, this long-term supply agreement signifies the growing importance of the US rare earth magnet market.
A Path to Independence
Both USA Rare Earth and Australian Strategic Materials share a common goal of reducing reliance on China for critical materials. This supply agreement is a significant step towards achieving that objective. It secures the majority of USARE’s metal and alloy requirements for magnet production until they can utilize materials from their Round Top reserve in Sierra Blanca, Texas.
Conclusion
The partnership between USA Rare Earth and Australian Strategic Materials is a crucial development in the rare earth metals industry. By securing a stable supply of these essential materials, USA Rare Earth is moving closer to its goal of bringing magnet production back to American soil. This collaboration also signifies a shift towards diversifying the rare earth magnet supply chain, supporting the growth of advanced technologies and enhancing the nation’s energy, mobility, and security sectors. With a strong commitment to independence from Chinese reliance, both companies are on a path to reshape the future of critical metals production.
