Aclara Assets Inc. (“Aclara” or “Firm”) (TSX:ARA) is happy to announce that it has signed a Memorandum of Understanding with VACUUMSCHMELZE GmbH & Co. KG (“VAC”), which establishes a non-binding, non-exclusive, preliminary settlement, to collectively strategy potential shoppers as a “mine-to-magnets” resolution for ESG compliant everlasting magnets (the “Preliminary Settlement”).
Aclara and VAC imagine that there’s a vital market alternative pushed by the rising demand for electrical autos (“EVs”), wind generators, and different clear applied sciences that require uncommon earth everlasting magnets produced pursuant to ever-increasing ESG requirements. Such everlasting magnets require vital portions of each gentle and heavy uncommon earth minerals. Presently, acquiring these uncommon earth mineral supplies while additionally having the capability to course of them, mixed with the economic expertise wanted to manufacture everlasting magnets, could be very restricted and concentrated amongst a number of Asia-based suppliers. This provide/demand dynamics ends in a promising background to develop a brand new, resilient, ESG-focused provide for everlasting magnets.
The strategic alliance between VAC and Aclara is exclusive as a consequence of Aclara being one of many only a few potential suppliers of Dysprosium and Terbium, two extremely coveted heavy uncommon earth minerals that are key within the manufacturing of everlasting magnets and will not be simply out there exterior of Asia. Aclara is presently growing two ionic clay initiatives, one in Chile and one other in Brazil, for the manufacturing of a high-purity heavy uncommon earth carbonate. As well as, the Firm is growing processing expertise by its US-based subsidiary to have the ability to obtain this carbonate and produce with it magnetic alloys. These alloys, in flip, are the important thing enter required by VAC to provide everlasting magnets.
VAC is taken into account the biggest producer of uncommon earths magnets exterior of Asia, with greater than 40 years of expertise in magnet making expertise. VAC, whose primary everlasting magnet facility is situated in Hanau, Germany, not too long ago executed a contract with Normal Motors (GM) to provide GM with everlasting magnets by constructing a brand new magnets’ plant within the State of South Carolina, United States.
Accordingly, every of Aclara and VAC are strategically positioned to collaborate to construct a dependable long-term resolution to provide high-performance everlasting magnets to energy EV motors and different applied sciences for our international shoppers.
Settlement Construction and Subsequent Steps
The collaborative relationship between Aclara and VAC isn’t structured as a authorized entity. As an alternative, every of the events will have interaction in collaborative efforts, in a relationship characterised as (i) most well-liked supplier-purchaser and (ii) cooperation on advertising and marketing, buyer relations, and associated issues. Highlights of quite a lot of the collaborative subsequent steps embody however will not be restricted to:
- VAC’s intention to assist the additional growth of Aclara’s uncommon earth metals and alloys current three way partnership mission with CAP S.A., by offering product specification necessities to provide the high-performance everlasting magnets utilized in EVs;
- the intention of each events to collectively analyze the mine to magnets price construction to develop an optimum cost-effective resolution for potential clients; and
- the intention of each events to collectively strategy potential new clients and current them with a ‘one-stop-shop’ resolution to safe geopolitically impartial and ESG accountable everlasting magnets.
VAC’s CEO, Erik Eschen, commented:
“We’re thrilled to announce the fortification of our partnership with Aclara, a frontrunner within the growth of ionic clay mines in South America. This collaboration is aimed toward streamlining the availability chain for uncommon earth components, particularly Dysprosium and Terbium. These components play a pivotal position within the decarbonisation of the transportation sector and the technology of renewable power. By becoming a member of forces with Aclara, VAC is dedicated to tackling some of the urgent problems with our period. Our joint efforts not solely create worth for our clients and shareholders but additionally contribute considerably to the well-being of our planet.”
Aclara’s CEO, Ramon Barua, commented:
“This strategic alliance is anticipated to supply nice synergies to each Aclara and VAC because it combines a clear supply of heavy uncommon earths with the expertise wanted to transform these sources into precise merchandise. It is step one in the direction of fixing an actual want out there, because the transition to electrical autos requires new uncommon earths provide chains, that are presently not being addressed in a complete method. This strategic alliance will create worth for VAC, Aclara, OEMs and for our planet, as we will probably be nearer to attaining our local weather change targets in a sustainable method.”
About VAC
VACUUMSCHMELZE (VAC) is a number one international producer of superior magnetic options, uncommon earth everlasting magnets, and inductive parts. With in depth utility know-how and 100 years of expertise in materials science and product growth, VAC designs and manufactures mission crucial options for all kinds of industries, together with renewable power, e-mobility, automotive, industrial automation, medical, aerospace and protection. VAC’s distinctive potential to develop and manufacture from base components by closing merchandise permits us to offer clients optimum kind elements and efficiency, producing greatest in school environment friendly options in an environmentally aware method. Extra data is on the market at www.vacuumschmelze.com. VAC is a portfolio firm of Ara Companions, a world personal fairness agency that’s decarbonizing the economic economic system.
About Acara
Aclara Assets Inc. (TSX: ARA) is a development-stage firm that’s centered on heavy uncommon earth mineral sources hosted in Ion-Adsorption Clay deposits. The Firm’s uncommon earth mineral useful resource growth initiatives embody the Penco Module within the Bio-Bio Area of Chile and the Carina Module within the State of Goiás, Brazil.
Aclara’s uncommon earth extraction course of presents a number of environmentally enticing options. Round mineral harvesting doesn’t contain blasting, crushing, or milling, and due to this fact doesn’t generate tailings and eliminates the necessity for a tailing’s storage facility. The extraction course of developed by Aclara minimizes water consumption by excessive ranges of water recirculation made potential by the inclusion of a water therapy facility inside its patented course of design. The ionic clay feedstock is amenable to leaching with a typical fertilizer primary reagent, ammonium sulfate. Along with the event of the Penco Module and the Carina Module, the Firm will proceed to determine and consider alternatives to extend future manufacturing of heavy uncommon earths by greenfield exploration packages and the event of extra initiatives throughout the Firm’s present concessions in Brazil, Chile, and Peru.
Ahead-Trying Statements
This information launch comprises “forward-looking data” throughout the that means of relevant securities laws, which displays the Firm’s present expectations relating to future occasions, together with statements with regard to, amongst different issues, the Firm’s expectations together with statements with regard to, amongst different issues, the Firm’s strategic investments and partnerships, the present and future valuation of the Firm, the financial impact of the Preliminary Settlement, the success of its and its subsidiary’s growth initiatives and the Firm’s expectations as to the partnership and the transactions contemplated thereby. Ahead-looking data relies on quite a lot of assumptions and is topic to quite a lot of dangers and uncertainties, a lot of that are past the Firm’s management. Such dangers and uncertainties embody, however will not be restricted to, the elements mentioned beneath “Threat Components” within the Firm’s annual data kind dated as of March 22, 2024 filed on the Firm’s SEDAR+ profile. Precise outcomes, timing, efficiency, achievements or future occasions or developments might differ materially from these expressed or implied herein. Except in any other case famous or the context in any other case signifies, the forward-looking data contained on this information launch is supplied as of the date of this information launch and the Firm doesn’t undertake any obligation to replace such forward-looking data, whether or not because of new data, future occasions or in any other case, besides as expressly required beneath relevant securities legal guidelines.
For additional data, please contact:
Ramon Barua
Chief Govt Officer
investorrelations@aclara-re.com
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