Shares in Brazilian Rare Earths Ltd (ASX: BRE) hit a new record on Thursday following the announcement of a 10-year sales deal with French company Carester.
Under the deal, Brazilian Rare Earths will supply heavy rare earth feedstocks to Carester for an initial 10-year term, with the French company buying up to 150,000 tonnes per year of dysprosium and terbium.
Carester, which is backed by the French Government and Japanese investor partners, is currently building one of the world's largest heavy rare earth separation and recycling plants in Lacq, France.
That facility, which is expected to be up and running by late 2026, is expected to produce about 600,000 tonnes per year of heavy rare earth oxides when at full capacity, Brazilian Rare Earths said.
Image source: Getty Images
Deal about more than just sales
The companies have also agreed to share technical know-how, with Carester to provide engineering, construction, and commissioning services for Brazilian Rare Earths' planned rare earth separation plant, to be built at the Camacari Petrochemical Complex in Bahia, Brazil.
As the company said in a statement to the ASX:
These agreements underpin Brazilian Rare Earths' strategy to establish Brazil as a leading hub for rare earth production, supplying high-value neodymium and praseodymium oxide, heavy rare earth concentrate, separated dysprosium and terbium oxides and uranium.
The company said Carester had global experience building rare earth separation facilities.
Brazilian Rare Earths Managing Director Bernardo da Veiga said the deal validated the company's strategy.
This strategic partnership with Carester validates our strategy: accelerate the development of our high-grade Brazilian rare earth assets, focus on heavy rare earths DyTb (dysprosium and terbium) where global supply is short, partner with recognised global leaders like Carester to establish Brazil as a leading global hub for rare earth production. Teaming with Carester gives us the technical depth and downstream capacity to rapidly convert our ultra- high-grade Brazilian rare earths into the vital products customers need.
Dysprosium and terbium are used in the production of high-performance permanent magnets.
Approvals in place
Brazilian Rare Earths also announced recently that it had received final operating approval from the Brazilian Government's regulator to operate its pilot plant and laboratory facility at the petrochemical complex.
The plant is expected to start operating in mid-2026 and will be used to optimise the processing of the company's ore, ahead of "potential future industrial-scale operations", the company said at the time.
Brazilian Rare Earths shares hit a new record of $4.93 on Thursday's news, and by mid-afternoon were changing hands for $4.88, up 7.5%.
The shares have more than tripled in value over the past year, with the company valued at $1.1 billion at the close of trade on Wednesday.
