Special Report: Hastings Technology Metals has penned terms to negotiate an initial 10-year binding commercial offtake arrangement for the provision of REE feedstock to global magnet manufacturer Neo Performance Materials (Neo).

Andrew Forrest-backed Hastings is on the cusp of becoming Australia’s next REE producer, and its Yangibana project in WA’s Gascoyne region is considered one of the most secure, long-life mines to come online in the near future.

An offtake arrangement with Neo could see Hastings Technology Metals (ASX:HAS) supply up to 25,000 tonnes per annum (tpa) of an expected production total of 37,000tpa of rare earth concentrate starting from Q1 2025.

A further part of the agreement will see HAS supply 10,000tpa of mixed rare earth concentrate (MREC) to Neo once its planned hydrometallurgical plant comes online as part of Yangibana Stage 2, equating to 66% of total production.

The company’s REE jam is neodymium and praseodymium (NdPr), vital components in magnet production and advanced technology products, which Yangibana’s mine and beneficiation plant look to produce 37,000tpa of at an NdPr total rare earth oxide ration (TREO) of up to 52%.

The new partnership is built on the back of Hastings’ ~20% investment into Neo as part of a vertical integration “mine to magnet” strategy.

Neo’s global reach is impressive. Headquartered in Canada, the company has 10 magnet manufacturing plants in Canada, China, Estonia, Germany, Thailand, UK and the US, as well as an R&D facility in Singapore.

For its part, Neo plans to use Hastings’ REEs for the Silmet sintered rare earth manufacturing plant it’s building in Estonia to supply Europe’s EV and renewables markets.

HAS chair Charles Lew sees the deal as a unique opportunity to be a major player in building a European-centric magnet supply chain during this decade.

“The signing of this heads of agreement builds on Hastings’ strategic investment in Neo Performance Materials, representing a significant step forward in our vision to advance synergies between both companies with a view to creating a fully integrated mine-to-magnet supply chain,” Lew said.

“This agreement with Neo represents the first step in a strategic partnership that will establish Hastings as a reliable supplier of rare earth feedstock to the European permanent magnets industry, and further strengthens the staged development strategy for the Yangibana project, with a pathway to early project cashflows from Stage 1 concentrate sale.”



This article was developed in collaboration with Hastings Technology Metals, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.