Stellantis Explores Rare Earth Supply Deal With NioCorp, Sourcing Produce At Elk Creek Project, Nebraska
Portfolio Pulse from Shivani Kumaresan
Stellantis NV (STLA) and NioCorp Developments Ltd (NB) have signed a Rare Earth Offtake Term Sheet to enter into a definitive rare earth supply agreement. This move supports Stellantis' commitment to build resilient supply chains and reach carbon net zero by 2038. The collaboration will also boost NioCorp's path to commercial production of magnetic rare earth oxides in the U.S. The term sheet also anticipates a possible strategic investment by Stellantis in NioCorp's Elk Creek critical minerals project.
July 06, 2023 | 5:34 pm
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NEUTRAL IMPACT
Stellantis has signed a rare earth supply agreement with NioCorp, which could lead to a strategic investment in NioCorp's Elk Creek project. This supports Stellantis' net zero goal.
The agreement with NioCorp supports Stellantis' commitment to reach carbon net zero by 2038. However, the stock is currently trading lower, indicating that the market may need time to digest the news.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
NioCorp has signed a rare earth supply agreement with Stellantis, which could boost its path to commercial production of magnetic rare earth oxides in the U.S. and lead to a strategic investment by Stellantis.
The agreement with Stellantis could boost NioCorp's path to commercial production and lead to a strategic investment by Stellantis, which could positively impact NioCorp's stock.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80