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Automaker Stellantis and critical metals firm NioCorp sign rare earth offtake term sheet

Kitco Media
By Vladimir Basov
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(Kitco News) - Automaker Stellantis (NYSE: STLA) and critical metals project developer NioCorp (Nasdaq: NB) (TSX: NB) today announced the signing of a rare earth offtake term sheet.

According to a press release, the objective of the term sheet is to enter into a definitive rare earth supply agreement to support Stellantis' commitment to build resilient supply chains and reach carbon net zero by 2038 and to help accelerate NioCorp's path to commercial production of magnetic rare earth oxides in the U.S.

The term sheet envisions a definitive agreement for a 10-year offtake contract for specific amounts of neodymium-praseodymium oxide, dysprosium oxide, and terbium oxide that NioCorp aims to produce at its Elk Creek critical minerals project in southeast Nebraska, subject to the receipt of adequate project financing. 

Mark Smith, Executive Chairman and CEO of NioCorp, said, "We are very pleased to announce that NioCorp and Stellantis have agreed to collaboratively develop Stellantis’ magnetic rare earth supply chain, including helping to identify a sintered rare earth permanent magnet manufacturer that provides additional geographic optionality to Stellantis, in support of their ambitious commitment to reach carbon net zero by 2038. 

"We believe that NioCorp’s position as a potential U.S. supplier of multiple critical minerals needed for vehicle electrification offers Stellantis important optionality to secure supply chains and support its growth targets."

NioCorp is developing a critical minerals project in Southeast Nebraska that will produce niobium, scandium, and titanium. The company also is evaluating the potential to produce several rare earths from the Elk Creek project.

Stellantis is one of the world's leading automakers and a mobility provider. Its brands include Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, Fiat, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys.

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Vladimir Basov

Vladimir (PhD, MEng in Mining) is a professional mining engineer, scientist and analyst that has more than 20 years of practical in-field and research experience. He is particularly interested in collecting, processing baseline data and writing insightful data-driven mining industry analytics, articles, statistical and research reports.

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