Hyundai, Kia Sign Rare Earths Supply Deal with Australia’s Arafura
- November 7, 2022
- Posted by: Quatro Strategies
- Category: Mining
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.
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