Hyundai, Kia Sign Rare Earths Supply Deal with Australia’s Arafura

Australia’s Arafura Rare Earths announced on Monday it signed a binding supply agreement with South Korean automaker Hyundai and its unit Kia to supply up to 1,500 tonnes of rare earth oxides per year. Neodymium-Praseodymium (NdPr) oxide, an element used in the making of electric motors for electric vehicles (EVs), demand from automobile companies has skyrocketed in recent years, spurring automakers to make hefty supply deals with miners.

According to the agreement, Arafura will supply NdPr over seven year that could go up to 1,500 tonnes per year from the fourth year when its Nolans project in Australia’s Northern Territory begins production.

Supply of the element is currently anticipated to commence in 2025 subject to project financing, construction and commissioning.

The Perth-based mining company also signed an agreement to begin talks for strategic investment with Hyundai and its affiliates.

In July, Arafura signed a non-binding agreement to help GE Renewable Energy build a supply chain that it will need to manufacture offshore wind turbines.

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Need to access the insight?

Start your 7-day free trial now

Do you need to access special insights on this matter?

Start your 7-day free trial  and become a member today

Subscribe to Top Insights Today

Subscribe to Executive Newsletter Top Insights Today

The Executive Newsletter -Top Insights Today- puts global business events in perspective through special insights

Join the ranks of global executives and subscribe to Top Insights Today

Top Insights Today covers insights on energy, clean-tech, oil&gas, mining, rare earths, defense, aviation, infrastructure, manufacturing, electrical vehicles, big-tech, finance and politics of business

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Germany to Keep Three Nuclear Plants Operational

German Chancellor Scholz has asked the economy, environment and finance ministries to prepare a legal framework to keep the country’s three nuclear power plants operational until as late as Apr. 15, 2023. Germany had originally planned to phase out nuclear power by the end of 2022, but after Russia cut off gas flows to Europe the government decided to keep two plants operating. In addition to Isar II and Neckarwestheim II plants, the government also wants to include Emsland in the nuclear life extension plan. 

U.S. Restrictions Could Boost China’s Domestic Chip Technology

Washington’s move to restrict China from bolstering its chipmaking industry is helping the country’s semiconductor company stocks to rise as the U.S. measures could fire up support for homegrown technology. The U.S. is urging the Netherlands to ban ASML Holding from selling China technology essential to make a large chunk of the world’s chips.

Special Report-U.S. to Go After Industry, Not Ordinary Russian Consumer

The Biden administration does not plan to punish everyday Russian consumers and primarily target the industrial sectors if a Russian invasion of Ukraine occurs. Key people from business and government could also face massive sanctions in case of an invasion.

Stay informed

error: This content is protected !!