Arafura Rare Earths has signed with global wind turbine manufacturer Siemens Gamesa to supply at least 200 tonnes of minerals a year from its Nolans project.
The Perth-based rare earths miner will supply Neodymium and praseodymium (NdPr) to Siemens Gamesa Renewably Energy for five years, with an option of a two-year extension.
Arafura announced on the market that contract volumes for NdPr metal were 200t a year, starting in 2026, but would increase to 360tpa in the second year and 400tpa from the third to the fifth year.
The Nolans project is a rare earth ore-to-oxide mine and processing facility in the Northern Territory.
“We are delighted to have concluded negotiations for our second offtake agreement,” Arafura managing director Gavin Lockyer said.
“Siemens Gamesa is the world’s leading manufacturer of offshore wind turbines, and this agreement compliments our strategy to create supply diversification into the renewable and e-mobility sectors.”
The NdPr from Nolans will be used to manufacture permanent magnets for offshore wind turbines assembled at Siemens Gamesa’s Cuxhaven production facility in Germany, the ASX announcement said.
"Arafura currently anticipates first production of NdPr oxide in 2025 with annual production expected to ramp up to 4,440 tonnes per annum in 2028," it said.
"These dates are dependent on a number of factors, including securing remaining offtake agreements, securing funding on appropriate terms to develop the project and successful construction, commissioning and ramp up of the project."
All components for the hub, generator and backend are to be assembled in the turbine and then shipped globally.
In November, Arafura signed its first binding offtake agreement to supply 1,500tpa of NdPr oxide or its equivalent in NdPr metal to Hyundai for a seven-year term.
According to the company's announcement, about 53 per cent of the targeted 85 per cent annual production from the Nolans project has been contracted.
Arafura shares were up 5.63 per cent today, trading at 51 cents as of 12.50pm AEST.