Arafura Rare Earths has secured up to US$115 million ($171.4 million) in untied loan guarantees from Euler Hermes Aktiengesellschaft, Germany's export credit agency.

The move marks a pivotal step in the company's debt-led strategy to establish a global supply chain for neodymium-praseodymium outside China.

The guarantees will support Arafura in securing additional debt financing and meeting credit approval conditions with commercial lenders.

The agreement includes commitments for NdPr supply to German firms.