Thyssenkrupp, Northern Minerals Reach New Rare Earths Supply Deal

SEATTLE (Scrap Monster): Australia-based Northern Minerals Ltd. announced that it has signed a rare earths supply agreement with Germany’s thyssenkrupp AG. As per the agreement, thyssenkrupp will purchase the entire heavy rare earth carbonate from Northern Minerals’ Brown Range project. The deal that includes current stockpiles will be effective immediately. The financial terms of the deal were not disclosed.

Commenting on the new agreement, George Bauk, Chief Executive Officer, Northern Minerals stated that the company will benefit from the lack of price caps in the agreement. The prices of rare earths elements have surged higher significantly during the current year on fears of reduction in shipment volumes from China to the U.S. on account of the ongoing trade war between the countries.

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The new agreement with thyssenkrupp replaces the previous offtake agreement with Chinese Lianyugang Zeyu New Materials Sales Co Ltd. It includes a provision for thyssenkrupp to collaborate with Northern Minerals on future expansion of the project.