Australian company Arafura will supply rare minerals to Hyundai and Kia

Australian company Arafura announced on Monday that it had signed a seven-year contract to supply neodymium and praseodymium, two rare minerals that are key to making high-tech devices, to South Korean car makers Hyundai and Kia.

Arafura will sell 600 tons of neodymium oxide and praseodymium oxide or their metal equivalents of these rare minerals annually to these companies when the Nolans mining project goes live in 2025, according to a statement to the Australian Stock Exchange (ASX).

This amount will increase between the fourth and seventh years of the agreement to 1,500 tons of these rare minerals, the Australian mining company said in a statement, which indicated that the price of minerals would be set in US dollars in accordance with a formula to determine the cost. every ton.

Arafura expects the Nolans project, located in the Northern Territory in the middle of the central Australian desert, to produce about 4,440 tons of these rare minerals per year by 2027.