Rainbow Rare Earths (LSE: RBW) announced on Monday a strategic supply agreement with UK-based Less Common Metals Ltd (LCM) to supply magnet separated rare earth oxides neodymium and praseodymium, dysprosium and terbium.
The elements are designated as ‘critical minerals’ in the UK’s Critical Minerals Strategy and used in electric vehicles and wind turbines, as well as in defense and other high-tech products.
LCM is a world leader in the manufacture and supply of complex alloy systems and metals.
According to the company, the separated rare earth oxides supplied by Rainbow will be used for manufacturing into metal in order to create an alloy, which is then supplied to permanent magnet manufacturers in the EU and the US.
LCM is currently the only rare earth metal and alloy manufacturing facility in the UK and one of the only facilities in the Western world.
Pilot-scale production at Rainbow’s Phalaborwa project in South Africa started in June. According to an October 2022 PEA, Phalaborwa will produce 26,208 tonnes of separated magnetic rare earth oxides over 14.2 years.
Shares of Rainbow Rare Earths surged 7% by 11:28 a.m. EDT. The company has a market capitalization of $122 million.