STELLANTIS N.V. (Alliance News) - Stellantis NV and NioCorp Developments Ltd announced Friday the signing of a binding agreement to purchase rare earths.
The goal is to enter into a definitive rare earth supply agreement to support Stellantis' commitment to build resilient supply chains and achieve zero carbon emissions by 2038 by helping to accelerate NioCorp's progress toward commercial production of rare earth magnetic oxides in the US.
The agreement signed today defines a 10-year purchase agreement for specific quantities of neodymium-praseodymium oxide, dysprosium oxide and terbium oxide that NioCorp intends to produce with the Elk Creek Critical Minerals project in southeastern Nebraska subject to obtaining adequate project funding. Final volumes will be determined in a final agreement.
"Stellantis intends to lead the industry by committing to zero carbon emissions by 2038, a goal that requires innovation and a complete redefinition of procurement strategies," said Maxime Picat, Stellantis Chief Purchasing and Supply Chain Officer.
"Working with partners such as NioCorp, we are taking important steps to decarbonize mobility and secure strategic supplies of the raw materials necessary for the success of the company's global electrification programs highlighted in the Dare Forward 2030 strategic plan."
"We are very pleased to announce that NioCorp and Stellantis have agreed to jointly develop a supply chain of rare earth magnets for Stellantis, including helping to identify a sintered rare earth permanent magnet manufacturer that will provide Stellantis with an additional geographic option in support of its ambitious commitment to zero carbon emissions by 2038," said Mark Smith, Executive Chairman and CEO of NioCorp.
"We believe NioCorp's position as a potential U.S. supplier of several essential minerals needed for vehicle electrification offers Stellantis an important alternative to secure supply chains and support its growth objectives."
Stellantis explained that since no economic analysis has been completed on the rare earth mineral resource that includes the Elk Creek project, further studies are needed to consider all relevant factors and determine whether rare earth mining will be reasonably justified and economically viable.
Stellantis stock is up 1.6 percent at EUR16.13 per share.
By Giuseppe Fabio Ciccomascolo, Alliance News senior reporter
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