Growing momentum in metal and alloy sales

• Strong momentum with increased metal and alloy enquiries at the Korean Metals Plant
• Confirmed sales of NdPr metal and NdFeB alloy to key partners, reinforcing ASM’s position as a trusted supplier of high-purity rare earth materials
• Progressing a secure, ex-China supply chain, with feedstock agreements to support the development of a resilient and alternative rare earth supply chain

June 6, 2025 (Source) — Australian Strategic Materials Limited (ASM or the Company) (ASX:ASM) is pleased to provide an update on sales activities at its critical metals facility in South Korea. ASM’s 100% owned Korean Metals Plant (KMP) is one of the few facilities outside of China – and ASM is the only ASX-listed company – with the capability to commercially produce rare earth metals and alloys. The KMP is currently supplying to a growing number of established and emerging permanent magnet manufacturers located in South Korea, the US and the EU.

Recent successful product validation work carried out at the KMP – combined with international trade volatility and geopolitical uncertainty – has resulted in an increased number of sales enquiries and accelerated customer discussions. As rare earth supply chains face increasing vulnerability due to China’s export restrictions, ASM is continuing to develop existing and potential customer relationships, positioned to deliver an alternative supply to the rest of world.

Korean Metals Plant sales pipeline

The KMP has recently concluded the following binding sales purchase orders, as summarised in the table below:

ASM and Noveon Magnetics (Noveon) have agreed on the delivery schedule for the first 15 tonnes of NdFeB alloy to be supplied under the existing NdFeB supply agreement¹. Delivery of this order will commence with an initial shipment in June 2025, with the balance to be made during the second half of 2025. The price of the alloy has been set at a fixed rate by reference to the agreed specification of the NdFeB alloy and the prevailing market price of the relevant rare earth oxides. Alloy from the KMP supports the fulfilment of the supply of US-made rare earth magnets, as part of efforts to strengthen alternative supply chains. These shipments mark a key milestone in the commercialisation of alloy production from the KMP and the continued development of a strategic partnership with Noveon.

ASM has received a purchase order from Vacuumschmelze (VAC) for the supply of 7.2 tonnes of NdFeB alloy across five different specifications. The price of the alloy has been set at a fixed rate for each specification by reference to the agreed specification of the NdFeB alloy and the prevailing market prices of the relevant rare earth oxides. A delivery schedule has been confirmed, with the first shipment commencing in July and continuing through the second half of 2025. This order follows the successful validation of previous material supplied to VAC and marks a positive step forward in the growing strategic relationship between the two companies.

ASM continues to advance customer validation programs through the sale of commercial samples, including a 100kg shipment to USA Rare Earths to support commissioning of its U.S. magnet facility, with ongoing discussions around future supply. ASM has now completed delivery of the previously reported 19-tonne NdPr metal sale to Magnequench (a division of Neo Performance Materials)². Discussions between the parties for further sales of a range of metals are progressing well.

An alternative feedstock supply

To fulfil these orders and other ongoing product validations, ASM will use existing stock and oxides supplied by an Australian supplier. ASM continues to engage with oxide suppliers in the US, Australia and the EU to support further production validations and growing sales.

In addition, ASM is in discussions with Canada-based Ucore Rare Metals Inc (Ucore) for oxide supply. Ucore’s vision is to become a leading advanced technology company, providing best-in-class metal separation products and services. Ucore recently executed a definitive contract for US$18.4 million with the U.S. Department of Defense.³ The award is to facilitate the construction of Ucore’s first commercial RapidSX™ machine and supporting infrastructure at its Strategic Metals Complex in Alexandria, Louisiana.

Management comment

“Our strengthening metal and alloy order book is the result of consistent and purposeful customer collaboration and enhanced technical know-how, combined with the increasing urgency for an alternative rare earth supply chain to meet global forecast demand,” said ASM Managing Director and CEO, Ms Rowena Smith.

“In recent months, ASM’s position as one of the leading ex-China producers of NdPr metal and NdFeB alloy has been cemented. Having navigated rigorous validation processes with existing and potential customers – proving our capability and product quality – we are now in a position to leverage our growing experience and reputation in the industry,” said Ms Smith.

ASM is continuing to work with a number of other emerging magnet makers in Korea, US and the EU and will continue to update the market as further sales are concluded.