American Rare Earths signs MOU with Novex for metals

• American Rare Earths has executed a memorandum of understanding with Novex to collaborate on oxide-to-metal rare earth production facilities.
• The announcement did not generate a major immediate stock movement, with shares holding steady on local exchanges.
• The partnership aims to establish a domestic United States supply chain that transforms local oxides into essential permanent magnet materials.

American Rare Earths (ASX:ARR) signed a memorandum of understanding with Novex to process rare earth oxides into metals required for permanent magnets.

The agreement follows a company technology review that identified high-temperature molten salt electrolysis as a clean route for future production.

The companies plan to establish a framework for long-term commercial cooperation spanning process optimisation and facility design.

Under the terms of the agreement, Novex will receive neodymium-praseodymium oxide from the demonstration plant to convert it into rare earth metal.

Following the announcement, the American Rare Earths share price was up at $0.36.

The business stated that the objective of the partnership is to build a fully domestic United States mine-to-magnet supply chain.

The collaboration responds to upcoming U.S. defence contractor regulations that ban deliveries containing elements processed in China.