Aug 12 (Reuters) - Australia's Northern Minerals Ltdsaid on Monday it has signed a rare earths supplyagreement with Germany's Thyssenkrupp AG, just daysafter terminating a deal with China's Lianyugang Zeyu NewMaterials Sales Co.
Thyssenkrupp has agreed to purchase the entirety of theheavy rare earth carbonate from the Browns Range project,Northern Minerals said in a statement.
The company did not disclose the financial terms of thedeal, which takes effect immediately and includes currentstockpiled product.
Northern Minerals Chief Executive Officer George Bauk saidthe company will benefit from the lack of price caps in theagreement, noting that Dysprosium and Terbium prices are up 60percent and 35 percent respectively over the year to date aselectric vehicles become more popular.
Prices of rare earths elements have jumped this year onspeculation that China, which controls about 80 percent of thesupply of materials used in everything from electric cars tosmartphones, could curb their shipments to the United States dueto their ongoing trade war.
"The continued shift of new car sales to electric vehiclesis gaining traction, with all major carmakers introducing EVvariants of existing models over the coming years," Bauk said ina statement. "With this shift, both car and component makers areaccelerating plans to invest further down the production chainin order to secure surety of supply."
The new deal also includes a provision for Thyssenkrupp towork with Northern Minerals on potential future expansion of theproject.
Northern Minerals cited a contract breach when it cancelledits two-year agreement with Lianyugang Zeyu on Aug. 6, but didnot give further details.
(Reporting by Aditya Soni in Bengaluru. Editing by JaneWardell.)