We are pleased to advise that ASM has signed a binding agreement with Vietnam Rare Earth Company (VTRE) for the purchase of rare earth oxides from Vietnam to be used as feedstock at ASM’s Korean Metals Plant (KMP). Under the terms of the agreement, VTRE will deliver 100 tonne of product for the remainder of 2023. The pricing for the feedstock (in USD) will be determined using a formula-based mechanism referencing published market prices for neodymium-praseodymium oxide.
The agreement was signed during a ceremony at the Australian Embassy in Vietnam.
ASM Managing Director & CEO Rowena Smith said:
This agreement will ensure we have the feedstock needed to continue the ramp-up of production at KMP, as anticipated sales contracts progress this year. In sourcing the required oxides from Vietnam and building our relationship with VTRE, we are also ensuring greater oversight of our supply chain, which supports our sustainability and governance commitments to both our customers and our shareholders.
Thank you to the Australian Embassy, Austrade and Korea’s Chungcheongbuk Province, for the assistance provided throughout discussions with VTRE for this agreement.