Automaker Stellantis N.V. and Canada-based miner NioCorp Developments Ltd on Thursday signed an offtake term sheet with the objective of establishing a supply deal for rare earth minerals critical to electrical vehicles.

The preliminary agreement establishes a 10-year offtake contract for minerals like neodymium-praseodymium oxide, dysprosium oxide, and terbium oxide that NioCorp aims to produce at its Elk Creek Critical Minerals Project in southeast Nebraska.

The rare earth oxides are used in making high-strength permanent magnets for electric vehicle motors, wind turbines and consumer electronics.

Final volumes will be determined in a definitive agreement, upon getting adequate project financing, the companies said in a statement.

Stellantis last week signed a offtake agreement with Australia's Kuniko to support the development of metals used in batteries.

(Reporting by Arshreet Singh; Editing by Shailesh Kuber)