Victory Metals Cuts Rare Earth Extraction Time by 87%, Signs Sumitomo LOI

Breakthrough in Rare Earth Processing

Victory Metals has unveiled a major leap forward in the processing of rare earth elements at its North Stanmore Project in Western Australia. New metallurgical test results reveal that approximately 80% of rare earths can be leached within just 30 minutes, a dramatic reduction from the previously assumed four-hour timeframe. This breakthrough promises to significantly reduce both capital expenditure and operating costs by enabling a smaller, more efficient leach circuit.

Further testing is underway to explore even shorter leach durations, potentially enhancing these savings. The rapid leach kinetics also mean less reagent consumption and a simplified downstream purification process, which together improve the project’s overall economics.

Enhanced Grades of Critical Minerals

In addition to faster extraction, Victory Metals reported substantial grade improvements in key critical minerals; terbium, dysprosium, and scandium; through a straightforward beneficiation process involving size fraction separation. By isolating particles smaller than 10.8 microns, the company achieved grade increases of up to 100% for scandium and significant uplifts for terbium and dysprosium, both vital for defence and high-tech applications.

This simple, low-cost beneficiation reduces the mass of material to be processed by about 73%, offering a low-CAPEX, low-OPEX front-end upgrade that enhances the project’s viability and aligns with global demand for critical minerals outside China’s export restrictions.

Environmental and Strategic Progress

Victory Metals has also cleared a key environmental milestone, completing comprehensive baseline studies covering flora, fauna, water, soils, and waste. The findings confirm no environmental impediments to advancing the project, reinforcing its credentials as a responsible and sustainable supplier of heavy rare earths.

On the corporate front, Victory signed a non-binding Letter of Intent with Japan’s Sumitomo Corporation to advance offtake and strategic cooperation. The agreement envisages Victory supplying up to 30% of annual production, including a dedicated dysprosium-terbium product, with pilot plant sales expected to commence in 2027.

Further strengthening its geopolitical positioning, Victory appointed Emma Doyle, former Deputy Chief of Staff to U.S. President Donald Trump, as Senior Advisor for U.S. Strategic Engagement. This move aligns with recent Australia-U.S. initiatives to build allied rare earth supply chains, positioning Victory at the nexus of critical mineral geopolitics.

Financial Position and Outlook

Victory Metals ended the quarter with a robust cash balance of approximately AUD 13.56 million, supporting ongoing exploration and development activities. The company is integrating these metallurgical and strategic advances into its upcoming Pre-Feasibility Study, expected in 2026, which will provide further clarity on project economics and timelines.

With a world-class resource base and growing strategic partnerships, Victory Metals is poised to play a pivotal role in securing Australia’s position in the global rare earths market.