News: ASM UPDATE 1-Australian Strategic Materials to sell rare-earths alloy to US magnet maker

(Adds details on the deal, background in paragraphs 2-5)

Aug 3 (Reuters) - Australian Strategic Materials (ASM) said on Thursday it had signed a five-year agreement to supply neodymium iron boron (NdFeB) alloy from its Korean Metals Plant to magnet maker USA Rare Earth LLC.

The deal, signed through unit ASM Korea Co Ltd, will secure the majority of USA Rare Earth's metal and alloy requirements for magnet production until it begins using materials from its Round Top reserve in Texas, the company said in statement.

ASM expects to start supplying NdFeB alloy, which is used in making permanent magnets for electric vehicles and wind turbines, to USA Rare Earth in 2024.

In May, the company signed a similar deal with U.S.-based rare-earths magnet maker Noveon Magnetics Inc to sell 100 tonnes of the alloy.

ASM had earlier signed a deal to buy rare-earths oxides from Vietnam to be used as feedstock for Korean Metals Plant. It is also developing its own rare-earths mine Dubbo in New South Wales, Australia.