Arafura Rare Earths has announced its board’s final investment decision (FID) to develop the Nolans Rare Earths Project in Australia’s Northern Territory, aimed at establishing the country’s first fully integrated ore-to-oxide operation.
Export Finance Australia (EFA) has provided a non-binding letter of support (LoS) for potential backing under the Critical Minerals Strategic Reserve, targeting up to 500 tonnes per annum (tpa) of neodymium-praseodymium oxide from the project.
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This development coincides with a global shift away from single-source supply dependencies in critical minerals.
The company plans to commence construction in September 2026.
Engineering, procurement and construction management will be led by Hatch, facilitating an efficient construction ramp-up.
Several nations including Australia, Germany, Canada, the US and South Korea, have expedited efforts to diversify supply chains, as highlighted by agreements such as the US-Australian Critical Minerals Framework.
Arafura plans to supply Hyundai and Kia in Korea, Siemens Gamesa in Germany, and Traxys units in Luxembourg and the US.
The project aims to deliver 4,440tpa of neodymium-praseodymium oxide to cater to the demand from automotive, wind energy and high-technology sectors.
The investment decision follows significant progress in Arafura’s financing and offtake strategies, including securing commitments from sovereign-backed institutions in four countries and firm offtake agreements with global manufacturers.
Arafura remains in discussions with the Australian Government and the EFA to secure final approvals and due diligence for the potential support outlined in the LoS.
Arafura CEO and managing director Darryl Cuzzubbo said: “The achievement of FID reflects years of disciplined execution and partnership building. The offtake relationships we have established with Hyundai, Kia, Siemens Gamesa, Traxys and the various types of economic support provided by the Australian Government are not transactional arrangements.
“They reflect a shared recognition that the diversification of global rare earth supply chains is an imperative, not merely an opportunity. The Australian Government has taken a decisive and proactive approach, developing an economic toolkit that supports the rare earths sector in the near term [and] that will deliver independent and functional markets into the future.”
In January 2025, the company secured A$200m ($123.7m) of investment from the Australian Government’s National Reconstruction Fund Corporation to advance the Nolans Project.
