Arafura inks binding rare earths offtake term sheet with Traxys North America

• Binding term sheet for the supply of 500 tpa of NdPr oxide
• Agreement for an initial five years
• Sale backs US rare earths supply chain aims
• Supporting US domestic manufacturing across a range of sectors

Arafura Rare Earths (ASX: ARU) has signed a binding offtake term sheet with global trader Traxys North America for up to 500 tonnes per annum (tpa) of neodymium-praseodymium (NdPr) oxide from the Nolans rare earths project.

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Arafura MD, Darryl Cuzzubbo, said the agreement with Traxys will support the revitalisation and onshoring of domestic manufacturing across automotive, defence, and advanced technologies sectors in the US.

Traxys’ intention is to seek to utilise the product for supply into the US supply chain, including the potential supply into US EXIM managed project vault.

“We have long believed that the right partners would define the quality and durability of Arafura,” Mr Cuzzubbo said.

“The offtake relationships we have established are not just transactional arrangements. They reflect growing alignment between industry participants and government-supported initiatives aimed at establishing resilient critical minerals ecosystems as an imperative, not merely an opportunity.

“As we advance this strategic agreement, we achieve another milestone in delivering the company’s broader long-term offtake objectives and financing strategy in support of a future investment decision.”

The agreement is separate and in addition to the Traxys Europe agreement announced in March 2025 for the supply of up to 300 tpa of NdPr oxide.

Neodymium (Nd) and praseodymium (Pr) are key rare-earth elements frequently alloyed together (NdPr) to produce the world’s strongest permanent magnets, essential for electric vehicles (EVs), wind turbines, and high-performance electronics.

Key terms of the mew agreement include:

• Annual contract volume of 500 tpa NdPr oxide and 7.5 tpa of the heavy rare earth dysprosium-terbium (DyTb) oxide.
• The deal is for a period of five years with an option to extend by two years by mutual agreement.
• Arafura expects to finalise and execute a long form offtake agreement prior to the sunset date of six months from execution of term sheet.

Traxys is a leading global physical trader and merchant in the metals and natural resources sectors.

ARU is steady at 33.5¢. Mkt cap $1.544B.

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