Gina Rinehart-backed Arafura Rare Earths (ASX:ARU) has agreed to supply Traxys North America with 850 tonnes of neodymium-praseodymium (NdPr) oxide a year from its Nolans project, up 70% from the volume in their original term sheet.
The binding agreement runs for five years, with an option to extend by two years by mutual consent. The May 2026 term sheet outlined annual deliveries of 500 tonnes of NdPr oxide and potential supplies of 7.5 tonnes of dysprosium-terbium oxides.
The supply deal comes as the US government is building a strategic reserve of critical minerals while helping protect manufacturers from supply disruptions. Traxys is one of three commodity trading and procurement companies selected to source and manage materials for the program.
The deal comes as the US seeks to reduce its reliance on China for rare earths, which are used in permanent magnets for defence equipment, electric vehicles and other advanced technologies.
Australia is also backing Nolans through its A$1.2 billion Critical Minerals Strategic Reserve, which has committed to buying 500 tonnes of NdPr oxide annually from the project. Hancock Prospecting, controlled by mining billionaire Rinehart, holds a 17.5% stake in Arafura.
Located about 135 km from Alice Springs, Nolans is being developed as Australia’s first integrated ore-to-oxide rare earths operation, with a mine, processing and separation plants, and supporting infrastructure. Construction began this month, with first production expected in mid-2029. Arafura says the project could meet about 5% of global rare earth demand.
The company is in discussions with other potential offtake partners as it advances the project.