What did Arafura Rare Earths (ASX:ARU) announce regarding its partnership with Traxys?

Arafura Rare Earths has signed a binding offtake term sheet with Traxys North America LLC to supply critical minerals from its Nolans Project. This agreement is a formal step toward securing long-term customers for its future production.

How much rare earth material will Arafura (ASX:ARU) supply under this new deal?

The contract specifies the annual supply of 500 tonnes of Neodymium-Praseodymium (NdPr) oxide and 7.5 tonnes of Dysprosium-Terbium (DyTb) oxide. The agreement covers an initial five-year term with an option to extend for an additional two years by mutual consent.

Why is the Traxys North America agreement significant for the US supply chain?

The deal is specifically designed to support the onshoring of domestic manufacturing in the United States for the automotive, defense, and advanced technology sectors. It includes potential supply integration into the US EXIM-managed Project Vault.

How does this new contract compare to Arafura’s previous deal with Traxys Europe?

This agreement is separate from and in addition to a prior contract with Traxys Europe SA announced on March 20, 2025. While the Europe deal was for up to 300tpa of NdPr oxide, the North American deal is larger at 500tpa and includes heavy rare earths like DyTb.

How will pricing be determined for Arafura’s (ASX:ARU) rare earth sales?

Pricing will be denominated in USD and linked to independent, transparent global seaborne indices, such as those from Benchmark Mineral Intelligence or Platts. This ensures that the revenue Arafura receives remains market-aligned rather than fixed at a static price.

Arafura secures major rare earths deal with Traxys

Written by Heidi Cuthbert Published May. 12 2026Last Updated May. 12 2026

Arafura Rare Earths (ASX:ARU) has formalised a strategic partnership by signing a binding offtake term sheet with Traxys North America, marking a pivotal step in the development of its Nolans Project.

The agreement commits Arafura to supplying 500 tonnes per annum of Neodymium-Praseodymium (NdPr) oxide and 7.5tpa of Dysprosium-Terbium (DyTb) oxide over an initial five-year term.

The arrangement is specifically designed to bolster the revitalisation of domestic manufacturing within the United States, targeting critical sectors including automotive, defence, and advanced technologies.

By integrating into the US supply chain—with potential links to the US EXIM-managed Project Vault—the deal underscores a growing alignment between industry participants and government-supported initiatives aimed at securing resilient mineral ecosystems.

The latest agreement follows a separate 300tpa NdPr oxide contract established with Traxys Europe SA in early 2025, further diversifying Arafura's global market footprint.

Pricing for the new contract will be tethered to transparent, independent global seaborne indices, ensuring market-aligned value for the rare earth materials.

Arafura Managing Director Darryl Cuzzubbo emphasised that these relationships transcend simple transactions, representing a long-term strategy to support future investment decisions.

The execution of the full long-form agreement is expected within the next six months, contingent upon customary conditions, including a final investment decision for the Nolans Project.