Stellantis and NioCorp Plan to Cooperate on Rare Earths

by | 7. Jul 2023 - 12:40 | Economy

The automaker plans to purchase raw materials from the Canadian mining company.

Stellantis has signed a term sheet with Canadian mining group NioCorp Developments Ltd. on the purchase of rare earths on Thursday. NioCorp will supply Stellantis with neodymium-praseodymium oxide, dysprosium oxide, and terbium oxide over a period of ten years, according to a joint press release. Nothing is known about the delivery quantities yet, as they would not be determined until a definitive agreement is signed. The raw materials will be taken from the Elk Creek Project in the US state of Nebraska. The next step will be to examine the feasibility of the project and carry out new studies before the two companies can conclude a final contract. A possible start date for the mining of rare earths and the subsequent delivery to Stellantis is currently not known.

The automotive company Stellantis, which owns brands like Chrysler, Fiat, and Peugeot and Opel, would like to profit from the possible cooperation with the rare earth supplier NioCorp not only to build up resilient supply chains but also to move a step closer to its self-imposed goal of halving its emissions by 2030 and achieving net zero CO2 emissions by 2038. Decarbonization is intended to affect all aspects contributing to automotive production, from vehicles to supply chains and sites. Chief Purchasing and Supply Chain Officer of Stellantis, Maxime Picat, also highlighted the importance of the agreement in reducing the industry’s CO2 emissions and in further expanding e-mobility. In addition to the supply of rare earths, the planned cooperation includes “helping to identify a sintered rare earth permanent magnet manufacturer,” said Mark Smith, Executive Chairman and CEO of NioCorp.

Photo: iSTock/Дмитрий Ларичев

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