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Iluka Resources Limited (ASX:ILU)

ALERT: Price-sensitive ASX Announcement for ILU
Current share price for ILU : $6.530 -1.6 (-19.68%)+
Announcement
Release
23 Jun 2026 8:14AM
Price at Release
$8.130
Full Release
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Summary
Iluka Resources Limited has announced a significant multi-year offtake agreement for the supply of rare earth oxides including neodymium, praseodymium, dysprosium, and terbium to a major global automotive company. The agreement, which is set to commence in 2028 and last for an initial term of four years, represents about 10% of Iluka's planned production during this period. Pricing under the agreement is set at the higher of minimum and market-linked prices, aiming to balance price volatility and supply security. Iluka is expected to generate a minimum revenue of US$155 million, with potential for US$172 million based on industry forecasts. This deal marks a milestone for Iluka's rare earth business, emphasizing its role as a credible supplier with diverse sources of feedstock. The agreement underscores a growing recognition of Iluka’s capabilities in the rare earths market and its strategic importance in global supply chains.
Key Points
  • Offtake agreement with a global automotive company for rare earths.
  • Agreement covers neodymium, praseodymium, dysprosium, and terbium.
  • Initial term of four years starting in 2028.
  • Represents 10% of Iluka's planned production over the period.
  • Minimum revenue of US$155 million, with potential for US$172 million.
  • Pricing set at the higher of minimum and market-linked prices.
  • Iluka's first major offtake agreement for its rare earths business.
  • The agreement highlights Iluka’s position as a credible, vertically integrated supplier.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.