More Critical Raw Materials for European EVs

by | 13. Jun 2023 - 09:43 | Economy

Hastings Technology Metals and Neo Performance sign non-binding rare earth supply agreement.

Australia’s Hastings Technology Metals and Canada’s Neo Performance Materials have signed a non-binding supply agreement for rare earth concentrate. The raw material will come from the Yangibana project in Western Australia, which Hastings is currently developing. Up to 25,000 metric tons of concentrate could then be made available annually to Neo’s processing plants in Asia and Europe starting in the first quarter of 2025, according to a press release.

This would be good news for the European electric vehicle industry, as Neo operates the only rare earths separation plant in the Western Hemisphere in Estonia and is also building a factory there to produce magnets from these critical raw materials. These permanent magnets are needed for the traction motors of many electric vehicles. Both the magnets and the raw materials needed for production currently come largely from China.

Hastings has already concluded similar agreements with the chemical group Solvay and Thyssenkrupp Materials Handling, positioning itself as an alternative to Asian suppliers. The company has also held a 19.9 percent stake in Neo Performance since 2022.

Photo: iStock/slovegrove

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