Neo Performance Materials has agreed with Meteoric Resources for offtake of 3,000 metric tons of total rare earth oxide per year from Meteoric’s Caldeira Project in Minas Gerais, Brazil to supply Neo’s magnet manufacturing plant in Estonia.
A non-binding memorandum of understanding (MOU) between the two companies outlines the general terms on which Neo is expected to enter into a binding offtake agreement for annual purchases of mixed rare earth carbonate (MREC) containing 3,000 tons of oxide from the Caldeira site. The term is expected to extend until Neo has purchased a total of 30,000 tons, with a customary renewal provision for subsequent terms. The agreement also contemplates a right of first refusal for Neo to purchase additional MREC from the site in excess of 6,000 tons on similar terms.
“We are laser focused on laying the groundwork for rare earth supply by securing offtake from diverse projects around the world,” said Rahim Suleman, CEO of Neo. “We are excited to add the Caldeira project to our growing pipeline of prospective sources of rare earth feedstock which could enable us to increase capacity utilization at Silmet and supply the needs of our sintered rare earth magnet plant in Europe when it comes online. The Caldeira Project is one of a group of key MOUs and agreements we have signed in securing feedstock. This provides our customers with maximum supply chain optionality.”
“We are very pleased to be bringing this important agreement with Neo to market,” said Nick Holthouse, CEO of Meteoric. “This represents Meteoric’s first step in our staged offtake strategy, and are delighted to support Neo in their aim to provide high-performance magnetics for automotive, factory automation, high-efficiency motors, residential appliances, and many other industries. Connecting and integrating into the developing alternate rare earth materials supply chain signals strong external market confidence in the Caldeira Project`s ability to progress to an FID and into production. We look forward to working with NEO and having the benefit of their technical support as we continue to pursue and develop our own downstream capabilities and progress to a binding commercial arrangement.”
Headquartered in Toronto, Neo supplies magnetic powders and magnets, specialty chemicals, metals and alloys globally through its three business segments — Magnequench, Chemicals & Oxides and Rare Metals. It operates 10 manufacturing facilities located in China, USA, Germany, Canada, Estonia, Thailand and the UK, as well as a dedicated research and development center in Singapore. Meteoric, based in Perth, Australia, is a rare earth minerals company that is progressing its flagship Caldeira Project in Minas Gerais, Brazil to become Brazil’s next rare earth producer.
For more information, please visit www.neomaterials.com and www.meteoric.com.au.
