Victory Metals’ Strategic Partnerships and Resource Upgrade Signal Rare Earth Supply Shift

Resource Upgrade and Metallurgical Breakthrough

Victory Metals Limited (ASX – VTM) has delivered a substantial upgrade to its flagship North Stanmore Heavy Rare Earth Elements Project in Western Australia. The company reported a 29.5% increase in contained tonnage within its Mineral Resource Estimate (MRE), now totaling 320.6 million tonnes at 510 parts per million total rare earth oxides (TREO). This upgrade incorporates results from an extensive aircore drilling campaign, which also revealed some of the highest grades of dysprosium ever recorded globally from a clay-hosted rare earth system.

In a notable metallurgical milestone, Victory produced a Mixed Rare Earth Oxide (MREO) containing 94% TREO directly from the North Stanmore deposit. This is the first known MREO of its kind from an Australian clay-hosted project, achieved without the need for additional capital-intensive concentration or cracking processes. The high heavy rare earth oxide (HREO) content, including critical elements like dysprosium and terbium, positions the project as a potentially low-cost supplier of strategic rare earths essential for high-tech industries.

Strategic Partnerships and Funding

Post quarter, Victory signed a non-binding Letter of Intent (LOI) with Sumitomo Corporation, a major Japanese trading house, to advance offtake and strategic cooperation. The LOI outlines a framework for Victory to supply up to 30% of annual production, including up to 50 tonnes per year of dysprosium and terbium products, over an initial five-year term. Sales from pilot plant operations are expected to commence in 2027, ahead of commercial production.

Victory also secured approval from the U.S. Government’s System for Award Management, enabling direct engagement with federal agencies such as the Department of Defence and the Export-Import Bank. This approval enhances Victory’s credibility and access to strategic funding, including a previously announced LOI for up to US$190 million from EXIM Bank.

Financially, the company completed a strongly supported $11.5 million placement to institutional and sophisticated investors, bolstering its cash position to approximately $15.1 million as of 30 September 2025. Additionally, Victory was awarded a $250,000 research grant from the Minerals Research Institute of Western Australia, validating its innovative approach to scandium oxide production, a valuable by-product of the project.

Market Position and Future Outlook

North Stanmore’s unique geochemistry, including its alkaline intrusion source, enables the recovery of scandium oxide alongside heavy rare earth elements. Recent research highlights scandium’s growing importance in next-generation sodium-ion batteries, potentially expanding demand beyond traditional aerospace and defence applications.

Victory’s identification of multiple ultra-high HREO zones within the resource, many classified as Indicated, suggests the potential for a high-value concentrate that could reduce processing scale and capital expenditure. The company is advancing metallurgical test work and preparing a prefeasibility study due later in 2025, which will provide further clarity on project economics and development pathways.

With rare earth supply chains under geopolitical scrutiny, Victory’s progress positions it as a strategic supplier of critical minerals to non-Chinese processors, particularly in the U.S., Japan, and Europe seeking secure and environmentally responsible sources.