By Robb M. Stewart

 

NioCorp Developments is looking to secure a 10-year deal to supply rare earth materials to automaker Stellantis.

The companies on Thursday said they signed a term sheet and are seeking to enter a contract for neodymium-praseodymium oxide, dysprosium oxide and terbium oxide that NioCorp plans to produce at its Elk Creek minerals project in southeast Nebraska. The supplies would support efforts by Stellantis to secure its supply chain and reach a carbon net zero target by 2038.

Final volumes will be set in a definitive agreement, the companies said.

NioCorp is developing its Elk Creek project to produce niobium, scandium and titanium, and is evaluating the potential to produce several rare earths that are used in a variety of defense and civilian applications. The company said that as no economic analysis has been completed on the rare earth mineral resource that comprise the Elk Creek project, further studies are needed before determining whether mining can be reasonably justified and is economically viable.

 

Write to Robb M. Stewart at robb.stewart@wsj.com

 

(END) Dow Jones Newswires

July 06, 2023 12:27 ET (16:27 GMT)

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