Stuttgart/Singapore – The Australian mine operator Hastings Technology Metals, among others with headquarters in Singapore, has concluded an off-take contract with thyssenkrupp for high-quality mixed rare earth carbonate from a mine in Western Australia. The volume of the contract is gigantic: A total of around 70,000 tonnes of rare earth carbonate are to be supplied over a period of ten years. The rare earths will be supplied to the German automotive industry, where they are needed primarily for the construction of electrical motors. Hastings was represented by Luther Rechtsanwaltsgesellschaft in the contract negotiations with thyssenkrupp.
Hastings Technology Metals has executed a binding offtake contract with Thyssenkrupp for high-grade mixed rare earth carbonate (MREC) from the company’s Yangibana Rare Earths Project in Western Australia. The contract requires Hastings to supply 9000 tonnes per year of MREC for the first five years and 5000 per year for the subsequent five years from its rare earth mine and processing facilities, totalling 70,000 tonnes over a ten-year period. The contract also grants TK exclusive right to market and distribute the company’s MREC on a worldwide basis.
thyssenkrupp plans to supply mainly the automotive sector. With the demand for electric vehicle, the automotive industry's need for rare earths, which are needed for the production of permanent magnets, among other things, is increasing. But the raw materials are also important for smartphones and wind turbines. "Currently, microchip manufacturers are already suffering from the global shortage of rare earths, as the main producer China exported significantly less raw materials last year than the year before. In the near future, the automotive industry could also be affected by the global shortage," says Dr Steffen Gaber, who co-heads the Industry Group "Mobility & Logistics" at Luther Rechtsanwaltsgesellschaft. In order to reduce China's influence, Australian companies, among others, are now going on the offensive.
Luther's international orientation, in particular its strong presence in the Asian market, is an important lever, especially in the automotive sector, as evidenced by the mandate won through Luther's Singapore office.
About Hastings Technology Metals Ltd.:
Hastings Technology Metals Limited is positioned to become Australia’s next rare earths producer and is advancing its flagship Yangibana Rare Earths Project in the Upper Gascoyne Region of Western Australia towards production. Neodymium and praseodymium are vital components in the manufacture of permanent magnets, which are used in a wide and expanding range of advanced and high-tech products including electric vehicles, wind turbines, robotics, defence industries, medical applications, etc. Hastings aims to become the next significant producer of neodymium and praseodymium outside of China. Hastings also operates the Brockman Heavy Rare Earths Project near Halls Creek in the Kimberley region of Western Australia. The deposits at Brockman contain high quantities of heavy rare earths, niobium pentoxide and zirconium oxide as well as rare metals tantalum, hafnium and gallium.
About thyssenkrupp in the automotive industry:
thyssenkrupp is one of the leading suppliers and development partners to the international automotive industry. The product and service portfolio includes materials, high-tech components, and system and automation solutions for vehicle construction. thyssenkrupp's sales to customers in the automotive industry were EUR 8.6 billion in fiscal year 2019/20.
On behalf of Hastings Technology Metals Ltd.: