Victory Metals has announced a partnership with one of Japan’s most powerful trading houses to advance its North Stanmore heavy rare earth project in Western Australia.
A non-binding letter of intent (LOI) has been entered with Sumitomo Corporation, marking what has been described as a “transformational step” in Victory’s journey and building on a non-binding memorandum of understanding (MOU) signed in December 2024.
The LOI has been earmarked as the “natural and critical” next step, with the decision demonstrating Sumitomo’s “clear vote of confidence” in the project and an end date of December 31 2028.
The strengthening of relations between the two parties helps in advancing offtake and strategic cooperation in North Stanmore, located 6km north of Cue, Australia’s largest indicated clay heavy rare earth resource.
The project has a mineral resource estimate of 320.6 million tonnes at 510 parts per million (ppm) total rare earth oxide and scandium oxide – as well as gallium oxide at 26 ppm and hafnium at 6 ppm.
The agreement outlines a pathway for pilot scale product testing and early sales through Sumitomo ahead of full commercial production.
Victory Metals are set to supply up to 30 per cent of annual production, or 1,000 tonnes per year of mixed rare earth carbonate, for an initial five-year term following the trial.
“This is an important and exciting milestone for Victory. To be advancing from an MOU into a formal LOI with Sumitomo Corporation, one of the world’s most respected trading giants validates the strategic importance of the North Stanmore Project on the global stage,” Victory Metals chief executive officer Brendan Clark said.
“With Sumitomo’s global marketing reach and Victory’s world-class resource, this partnership positions Victory as a flagship Australian supplier into Japan, a nation leading the world in rare earth processing and innovation outside of China.”
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