THE rare earth is a real problem because the raw materials often used in the production of electric cars: indeed, these elements are used in particular for the operation of electric motors, which are equipped with more and more vehicles, even if some manufacturers, such as Tesla, announce their desire to produce electric motors without rare earths elements.

Automobile group Stellantis just partnered with NioCorp Developments, an American mining and exploration company, for the supply of rare earth elements. Stellantis aims to have sustainable supply chains and achieve carbon neutrality by 2038.

Stellantis: rare earth element supply agreement

The letter of intent signed by the two partners lays the foundation for the project to sign the final supply agreement praseodymium-neodymium oxide, dysprosium oxide and terbium oxideon 10-year term.

NioCorp wants to produce these products through its Elk Creek critical minerals project, located in the southeastern part of the state of Nebraska in the United States: however, the necessary financing for this project needs to be obtained, and the final volumes will be determined in the definitive agreement entered into with Stellantis. With this partnership, NioCorp aims to accelerate commercial production magnetic rare earth oxides in the USA.

“Stellantis aims to become an industry champion in achieving carbon neutrality by 2038, a goal that requires innovation and a complete overhaul of our business”Maksym Pica, director of procurement and supply at Stellantis, said: “Working with partners like NioCorp, we are taking another step towards decarbonizing mobility and securing the strategic supply of raw materials needed to meet our electrification goals set out in our Dare Forward 2030 strategic plan.”.

Stellantis: Partnership with NioCorp

To date, there has been no economic analysis of rare earth mineral resources at NioCorp’s Elk Creek project, which is subject to further investigation. After taking into account all the relevant factors, this should make it possible to determine whether the extraction of rare earth elements can be reasonably justified and economically viable.

there signing a binding supply contract between Stellantis and NioCorp is subject to regulatory approval and various stages of negotiations and settlement of final terms between the two parties. Thus, both partners will confirm later whether an agreement on the supply of rare earth elements will really be signed.

“We are pleased to announce the collaboration between NioCorp and Stellantis to develop a supply chain for magnetic rare earth elements. In particular, it will enable Stellantis to identify a manufacturer of sintered rare earth permanent magnets with an additional geographical location in line with the ambitious goal of achieving carbon neutrality by 2038.”adds Mark Smith, Executive Chairman and CEO of NioCorp: “We believe NioCorp’s position as a potential U.S. supplier of several critical minerals required for the electrification of the automotive sector provides Stellantis with ample options to protect its supply chains and support its growth objectives.”.

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