Stellantis and NioCorp Developments have announced the signing of a rare earth offtake term sheet, aiming to establish a definitive supply agreement.

The sheet outlines a 10 year offtake contract for specific quantities of neodymium-praseodymium oxide, dysprosium oxide, and terbium oxide.

These will be produced at the Elk Creek Critical Minerals Project in south-east Nebraska, pending adequate project financing.

Final volume will be determined in the definitive agreement.

Before determining the economic viability of extracting rare earth elements, further studies and economic analyses are required to evaluate relevant factors.

The binding offtake agreement is subject to due diligence, final term negotiation, definitive documentation, and customary closing conditions, including regulatory approvals.

The companies did not guarantee a binding agreement would be reached.