NioCorp, a Canada-based mining company, has signed an offtake term sheet with automaker Stellantis for the supply of rare earth minerals crucial to the production of electric vehicles (EVs). The term sheet outlines a ten-year agreement for the supply of neodymium-praseodymium oxide, dysprosium oxide, and terbium oxide.
These minerals, which will be sourced from NioCorp’s Elk Creek Critical Minerals Project in Nebraska, will be used to manufacture high-strength permanent magnets essential for EV motors, wind turbines, and consumer electronics.
Stellantis, in line with its goal of becoming carbon net zero by 2038, aims to lead the industry in the decarbonization of mobility and redefine its sourcing strategies. The automaker plans to achieve this by working alongside partners like NioCorp, who can help ensure a strategic supply of raw materials necessary for the success of its global electrification plans outlined in the Dare Forward 2030 strategy.
However, the binding off-take agreement between NioCorp and Stellantis remains subject to various conditions, including due diligence, negotiation of definitive documentation, and customary closing conditions. There is no certainty that a binding agreement will ultimately be signed between the two parties.
Mark Smith, NioCorp’s executive chairman and CEO, expressed his satisfaction with the collaboration, stating that the partnership aims to develop Stellantis’ magnetic rare earth supply chain. This includes identifying a sintered rare earth permanent magnet manufacturer that can offer additional geographic options in support of Stellantis’ commitment to carbon neutrality by 2038.
In conclusion, the term sheet signed between NioCorp and Stellantis signifies a step towards securing a reliable supply of rare earth minerals for the production of EVs. By partnering with NioCorp, Stellantis aims to achieve its carbon neutrality goal while ensuring the success of its global electrification plans. However, the finalization of the binding off-take agreement is still contingent upon several factors, leaving the outcome uncertain.
