June 3 (Reuters) - Australia’s Hastings Technology Metals Ltd on Wednesday signed an agreement with German automotive supplier Schaeffler Technologies AG to supply mixed rare earths carbonate used in making electric vehicle parts, sending it shares about 30% higher.
The company said a “substantial volume” of the product would be supplied to Schaeffler from its Yangibana project in the Gascoyne region of Western Australia over an initial period of 10 years.
The Yangibana project mainly consists of deposits of neodymium and praseodymium - critical rare earth elements that are used in making permanent magnets, a key component of electric vehicles.
The agreement will also support Hastings in its eligibility for a German government loan to fund the construction of a mine and processing plant in Western Australia, the company said in a statement.
Hastings also pointed to a possibility for both parties to expand their partnership for other downstream rare earth processed products.
Shares of the company soared as much as 30.4% to a near six-month high of A$0.150 after the announcement.
Reporting by Shriya Ramakrishnan in Bengaluru; Editing by Rashmi Aich