Gina Rinehart-backed Arafura Rare Earths has boosted its offtake agreement with a commodities trader backed by Uncle Sam.
Arafura on Monday said it would supply 850,000 tonnes of neodymium-praseodymium — used in the manufacture of high-strength magnets for electric vehicles — to an unnamed “leading global raw materials trading company”, understood to be Traxys North America.
The new deal lifts the size of the offtake from 500,000t first agreed under a binding term sheet with the company in May.
“The trader has been tapped under the US government’s Project Vault initiative to help build resilient supply chains and secure critical mineral reserves for American manufacturing,” Arafura said.
“The trading company generates approximately $US10 billion in annual revenue and maintains over 20 global offices, covering over 50 traded commodities.”
Arafura said it would “no longer disclose the identity of offtake counterparties unless the identity of the particular counterparty is itself material”.
But the May binding term sheet it reference in Monday’s announcement was secured by Traxys.
US President Donald Trump unveiled Project Vault in February — a $US12 billion ($17b) reserve backed by $US10b from the US Export-Import Bank and $US2b in private funds, to stabilise prices of critical minerals and support manufacturers.
The stockpile will include critical minerals such as rare earths, lithium and copper, and was seen as yet another effort to break China’s chokehold on supply of minerals deemed critical to defence, medical and green energy technologies.
Arafura’s broke ground on its flagship Nolans project, 135km north of Alice Springs in the Northern Territory, last week.
The project was the first to be backed by the Federal Government’s critical minerals strategic reserve.
A final investment decision for Nolans was announced in May after the Government confirmed a non-binding commitment to secure 500t of rare earths from the project.
It is estimated that once fully operational in 2029, the mine will supply 5 per cent of global demand.
Arafura’s contract with the buyer will run for five years with an option to extend another two years.
Pricing in US dollars will be based on a global, seaborne pricing index such as the recently established Benchmark Minerals Intelligence indices or S&P’s Global Platts North America pricing index.
Arafura said it remains in talks with “a number of parties” about potential offtake deals.
Australia’s wealthiest person Mrs Rinehart became Arafura’s biggest shareholder, via Hancock Prospecting, through a $525 million capital raising in late 2025.
Gina Rinehart-backed Arafura Rare Earths has boosted its offtake agreement with a commodities trader backed by Uncle Sam.
Arafura on Monday said it would supply 850,000 tonnes of neodymium-praseodymium — used in the manufacture of high-strength magnets for electric vehicles — to an unnamed “leading global raw materials trading company”, understood to be Traxys North America.
The new deal lifts the size of the offtake from 500,000t first agreed under a binding term sheet with the company in May.
“The trader has been tapped under the US government’s Project Vault initiative to help build resilient supply chains and secure critical mineral reserves for American manufacturing,” Arafura said.
“The trading company generates approximately $US10 billion in annual revenue and maintains over 20 global offices, covering over 50 traded commodities.”
Arafura said it would “no longer disclose the identity of offtake counterparties unless the identity of the particular counterparty is itself material”.
But the May binding term sheet it reference in Monday’s announcement was secured by Traxys.
US President Donald Trump unveiled Project Vault in February — a $US12 billion ($17b) reserve backed by $US10b from the US Export-Import Bank and $US2b in private funds, to stabilise prices of critical minerals and support manufacturers.
The stockpile will include critical minerals such as rare earths, lithium and copper, and was seen as yet another effort to break China’s chokehold on supply of minerals deemed critical to defence, medical and green energy technologies.
Arafura’s broke ground on its flagship Nolans project, 135km north of Alice Springs in the Northern Territory, last week.
The project was the first to be backed by the Federal Government’s critical minerals strategic reserve.
A final investment decision for Nolans was announced in May after the Government confirmed a non-binding commitment to secure 500t of rare earths from the project.
It is estimated that once fully operational in 2029, the mine will supply 5 per cent of global demand.
Arafura’s contract with the buyer will run for five years with an option to extend another two years.
Pricing in US dollars will be based on a global, seaborne pricing index such as the recently established Benchmark Minerals Intelligence indices or S&P’s Global Platts North America pricing index.
Arafura said it remains in talks with “a number of parties” about potential offtake deals.
Australia’s wealthiest person Mrs Rinehart became Arafura’s biggest shareholder, via Hancock Prospecting, through a $525 million capital raising in late 2025.