The Elements of Innovation Discovered
The Elements of Innovation Discovered
Metal Tech News - July 6, 2023
Rare earths are a suite of elements with special properties used in many high-tech devices. Stellantis has entered into an agreement to buy magnet rare earths for electric vehicle motors from a future mine at NioCorp's Elk Creek project.
Stellantis CEO Carlos Tavares and Ram Brand CEO Mike Koval Jr. unveil the all-electric Ram 1500 REV at the New York International Auto Show on April 5.
Continuing a flurry of investments into mining projects at the front end of electric vehicle supply chains, Stellantis has entered into a preliminary agreement to buy magnet rare earths from a future mine at NioCorp Developments Ltd.'s Elk Creek critical mineral project in Nebraska.
The neodymium, praseodymium, dysprosium, and terbium that Stellantis hopes to buy from Elk Creek are needed for the powerful rare earth magnets that go into the motors driving EVs, including electrified versions of the automaker's Jeep, Dodge, and Ram brands popular in North America.
"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," said Maxime Picat, chief purchasing and supply chain officer at Stellantis. "By working with partners like NioCorp, we are taking important steps, with the aim of 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."
Stellantis' EV sourcing strategy includes bolstering the very front end of EV supply chains by investing in mining projects that show promise for offering future supplies of the minerals needed for EVs but had little to no uses in the internal combustion engine cars that current automotive supply lines are geared for.
The global automaker's roster of early-stage EV metal partnerships includes Alliance Nickel (nickel-cobalt), Controlled Thermal Resources (lithium), Element 25 (manganese), Kuniko (cobalt-nickel) McEwen Copper (copper), and Vulcan Energy Resources (lithium).
In similar fashion, Stellantis has entered into terms with NioCorp to offtake magnet rare earths from Elk Creek, which is expected to accelerate the development of a mine at the Nebraska project and provide Stellantis with a U.S. source of rare earths.
NioCorp Developments CEO Mark Smith says the collaboration with the automaker also includes working together "to identify a sintered rare earth permanent magnet manufacturer that provides additional geographic optionality to Stellantis, in support of their ambitious commitment to reach carbon net zero by 2038.
Rare earths are not the only critical metals Elk Creek has to offer. In fact, the economics of developing a mine at this deposit in the American Midwest is based on niobium, titanium, and scandium, all of which are used in high-strength alloys.
A 2022 feasibility study outlines an underground mine at Elk Creek that would produce an estimated 170,409 metric tons of niobium, 431,793 metric tons of titanium, and 3,677 metric tons of scandium over 38 years of mining.
This operation is calculated to generate an after-tax net present value of US$2.35 billion and an internal rate of return of 27.6%.
It is expected it will take roughly 2.7 years to pay back the estimated US$1.14 billion in upfront capital needed to develop the Elk Creek Mine.
The feasiblity study also confirmed that Elk Creek hosts 632,900 metric tons of total rare earth oxides alongside the 970,300 metric tons of niobium oxide, 11,337 metric tons of scandium oxide, and 4.2 million metric tons of titanium oxides in the high-confidence indicated resource category.
"The updated feasibility study shows that the Elk Creek deposit contains an abundance of critical minerals, including rare earths, and we are working very hard to ensure America can benefit from the full range of the critical minerals our deposit could economically deliver," Smith said at the time.
When it comes to the magnet rare earths Stellantis is interested in, Elk Creek hosts 98,900 metric tons of neodymium, 26,900 metric tons of praseodymium, 9,100 metric tons of dysprosium, and 2,300 metric tons of terbium.
NioCorp is currently developing a process for recovering the rare earth ahead of updating the feasibility study to include this suite of tech elements to the already robust economics of recovering the alloy metals at Elk Creek.
"We believe that NioCorp's position as a potential U.S. supplier of multiple critical minerals needed for vehicle electrification offers Stellantis important optionality to secure supply chains and support its growth targets," said Smith.
With more than 16 years of covering mining, Shane is renowned for his insights and and in-depth analysis of mining, mineral exploration and technology metals.
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