Arafura Rare Earths has signed a binding five-year agreement to supply Traxys North America with up to 850 tonnes of neodymium-praseodymium oxide annually from its Nolans project in Australia’s Northern Territory. The volume is 70% higher than the 500 tonnes outlined in a May term sheet, and the contract includes an option for a two-year extension by mutual consent.
Pricing will be in US dollars and linked to an independent global seaborne rare-earth index. The earlier term sheet also contemplated annual deliveries of 7. 5 tonnes of dysprosium-terbium oxides, while the final agreement refers to associated heavy rare earths.
Traxys is participating in Project Vault, a US government initiative to build a strategic reserve of critical minerals and reduce exposure to foreign-controlled supply chains. The company was selected to manage raw-material procurement for the program, which is aimed at supporting US manufacturers facing supply risks. NdPr is used in permanent magnets for defence equipment, electric vehicles and other advanced technologies.
Nolans is about 135 kilometres from Alice Springs and is being developed as an integrated mine, beneficiation, extraction and separation operation. Construction began in October, with first production targeted for mid-2029. Arafura estimates the project could supply about 5% of global rare-earth demand.
Hancock Prospecting, controlled by Gina Rinehart, owns 17. 5% of Arafura.
Arafura is continuing discussions with other potential offtake partners as it advances the project. The expanded Traxys agreement adds to the project’s contracted sales while construction moves toward planned production.