Stellantis signs up to obtain rare earth automotive battery pack supplies from a source in Nebraska.
The automaker announces the signing of a “Rare Earth Offtake Term Sheet” with U.S. supplier NioCorp in a bid to reduce battery dependency on Asian nations while benefiting from financial incentives provided by the Inflation Reduction Act.
At the same time, NioCorp expects the agreement will pave the way to its commercial production of magnetic rare earth oxides in the U.S.
The deal envisions a definitive agreement for a 10-year offtake contract for specific amounts of neodymium-praseodymium oxide, dysprosium oxide and terbium oxide that NioCorp aims to produce at its Elk Creek Critical Minerals Project in southeast Nebraska, subject to the receipt of adequate project financing. Final volumes would be set in the definitive agreement.
No economic analysis has yet been completed on the rare earth mineral resource at Elk Creek. Further studies are required before determining whether extraction of rare earth elements is economically viable.
Maxime Picat, Stellantis chief purchasing and supply chain officer, says: “Stellantis intends to lead the industry with the commitment to be carbon net zero by 2038 – a goal that requires innovation and a complete redefinition of our sourcing strategies.
“By working with partners like NioCorp, we are taking important steps (toward) decarbonizing mobility and ensuring strategic supplies of raw materials necessary for the success of the Company’s global electrification plans highlighted in our Dare Forward 2030 strategy.”
