Critical metals producer Australian Strategic Materials (ASM) has signed an agreement with magnet maker USA Rare Earth (USARE) to supply the latter with neodymium iron boron (NdFeB) alloy from the Korean Metals Plant (KMP) in South Korea.

Under the five-year sales and tolling framework agreement via subsidiary ASM Korea, ASM will start NdFeB alloy supply in 2024 to USARE, which is ramping up the production of high-performance rare earth magnets.

Rare earth magnets are used in technologies ranging from mobile phones and medical devices to electric vehicles (EVs) and several defence applications.

USARE CEO Tom Schneberger said: “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.”

This deal will secure the majority of metal and alloy requirements of USARE for magnet production until it begins using materials from its Round Top reserve in Texas.

In a press statement, USARE said: “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.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

ASM and USARE are looking to strengthen their respective operations to reduce reliance on China.

Located in the Ochang Foreign Investment Zone in Ochang Province, 115km south of Seoul, KMP is currently producing neodymium and neodymium iron boron alloys.

These alloys are used in the permanent magnets in EVs and wind turbines.

The facility may develop other products at a later stage, including high-purity titanium, zirconium and hafnium.