Arafura inks rare earth oxide supply deal with Traxys

Australia’s Arafura Rare Earths on Thursday said it will supply up to 300 tons per annum of neodymium-praseodymium oxide from its Nolans project to European metals minerals firm Traxys over five years.

Neodymium-praseodymium, or NdPr, is a blend of two rare earth metals of neodymium and praseodymium, used to make powerful magnets for modern technologies.

Under the agreement, Arafura will supply a minimum of 100 tons per annum from its Nolans project, with the option to increase it by 200 tons annually.

The agreement will help the rare earth minerals producer to progress towards its goal of securing 80% of its 4,440 tonnes per annum NdPr oxide off-take target from the project.

Arafura has existing deals with automakers such as Hyundai and Kia, and with renewable energy major Siemens Gamesa RE.

Rare earths have recently gained growing interest from international investors due to their critical role in green energy transition and diversifying supply chains outside of China.

(By Kumar Tanishk; Editing by Vijay Kishore)