https://wcsecure.weblink.com.au/pdf/ARU/03074414.pdf
Posting this on April fools day is always a bit tricky!
So this has been in the works for a long time. Europe is just so slow these days. Must be frustrating to work with.
Some thoughts:
- The remainly KfW funding (rememeber they committed under the MOU for Euro $100 million (US$113 million)....and what they have turned binding is half that...and the other half is contingent on some German company securing 500 tpa.
- KfW getting a board seat. This is interesting. Obviously Germany wants insights into their supply chains.
As some of you would know, we are running a survey. One of the many insights, is that OEMs just don't understand how risky their current rare earth supply chain is with China. These companies have identified the risk, but it just remains a line item in their monthly risk report. The likilihood part of the risk is really not understood. ie there is a medium to strong likelihood that China could cut off your supply of rare earth/magnets due to geopolitcial reasons or beause China will focus its supply inwards soon. Most companies are putting the this likilhood as 'very low'. Which is baffling for the experts in this sector.
The reason i give you this insight....is that Arafura needs to convince these companies that there is a major issue with their supply chain, and they need to secure the Arafrua off take to de-risk their supply chain. So this is why things are taking longer.
I like how the ARU CEO also stated that Lynas and MP are pretty much totally "sold out". A clear shot across the bow for these companies thinking of signing with Arafrua.
Our advice to OEM companies, has been, sign up now, the rare earth storm is coming later this year, and de-risking your rare earth/magnet supply chain now is not much more expensive than your current China supply chain costs. But if you wait, it will only get more expensive.
Posting this on April fools day is always a bit tricky!
So this has been in the works for a long time. Europe is just so slow these days. Must be frustrating to work with.
Some thoughts:
- The remainly KfW funding (rememeber they committed under the MOU for Euro $100 million (US$113 million)....and what they have turned binding is half that...and the other half is contingent on some German company securing 500 tpa.
- KfW getting a board seat. This is interesting. Obviously Germany wants insights into their supply chains.
As some of you would know, we are running a survey. One of the many insights, is that OEMs just don't understand how risky their current rare earth supply chain is with China. These companies have identified the risk, but it just remains a line item in their monthly risk report. The likilihood part of the risk is really not understood. ie there is a medium to strong likelihood that China could cut off your supply of rare earth/magnets due to geopolitcial reasons or beause China will focus its supply inwards soon. Most companies are putting the this likilhood as 'very low'. Which is baffling for the experts in this sector.
The reason i give you this insight....is that Arafura needs to convince these companies that there is a major issue with their supply chain, and they need to secure the Arafrua off take to de-risk their supply chain. So this is why things are taking longer.
I like how the ARU CEO also stated that Lynas and MP are pretty much totally "sold out". A clear shot across the bow for these companies thinking of signing with Arafrua.
Our advice to OEM companies, has been, sign up now, the rare earth storm is coming later this year, and de-risking your rare earth/magnet supply chain now is not much more expensive than your current China supply chain costs. But if you wait, it will only get more expensive.
