Arafura approves $1.6bn Nolans rare earths project as West pushes China alternatives
Synopsis
Arafura Rare Earths has greenlit its $1.6 billion Nolans project in the Northern Territory after securing international financing and long-term supply agreements, as Western nations accelerate efforts to reduce reliance on China for critical minerals.
Arafura Rare Earths has approved the development of its A$1.6 billion Nolans rare earths project in Australia’s Northern Territory, marking a major milestone in Western efforts to diversify critical mineral supply chains away from China. The company said construction will begin in September, with first production expected from mid-2029. Shares in Arafura climbed as much as 13.6% following the announcement, outperforming the broader Australian market.
Key highlights
- Arafura approves $1.6 billion Nolans rare earths project in Northern Territory
- Project expected to become Australia’s third-largest rare earths operation by decade-end
- Funding backed by export credit agencies from the US, Canada, Germany and South Korea
- Production scheduled to begin from mid-2029
- Nolans project to supply NdPr oxide used in EVs and wind turbines
- Hyundai, Kia and Siemens Gamesa among future customers
International funding backs strategic minerals push
Arafura secured financing commitments from export credit agencies in the United States, Canada, Germany and South Korea, alongside support from global manufacturers and commodity trading houses.
The project also has backing from mining billionaire Gina Rinehart, whose Hancock Prospecting owns a 15.5% stake in the company.
The final investment decision follows years of financing negotiations and customer offtake agreements, reflecting growing urgency among Western governments and manufacturers to secure alternative rare earths supplies outside China.
Nolans project targets EV and wind turbine demand
The Nolans operation is designed to produce 4,440 metric tons of neodymium-praseodymium (NdPr) oxide annually. NdPr is a critical material used in electric vehicle motors, wind turbines and advanced electronics.
Arafura has already secured supply agreements with South Korean automakers Hyundai Motor Company and Kia Corporation, as well as renewable energy equipment maker Siemens Gamesa Renewable Energy and commodity trader Traxys.
The company said the project would target customers seeking reliable rare earth supplies outside China, which currently dominates global production and processing.
Australia strengthens rare earths ambitions
Once operational, Nolans is expected to become Australia’s third-largest rare earths producer behind Lynas Rare Earths and Iluka Resources.
Australia has increasingly positioned itself as a strategic supplier of critical minerals to allied nations amid geopolitical tensions and rising global demand for clean energy technologies.
Arafura is also expected to supply 500 tons of NdPr oxide to Australia’s planned strategic minerals reserve, which the federal government aims to launch by the end of the year.
Engineering contractor Hatch has been appointed to support development of the project.
What happens next
Site construction is scheduled to commence in September 2026, with commissioning and production targeted for mid-2029.
Investors and industry participants will closely watch execution timelines, financing drawdowns and supply chain development as Australia seeks to expand its role in the global rare earths market.
FAQs
Q1: What is the Arafura Nolans project?
The Nolans project is a rare earths mining and processing development in Australia’s Northern Territory focused on producing neodymium-praseodymium oxide used in EVs and renewable energy technologies.
Q2: How much is the Nolans project worth?
Arafura Rare Earths has approved a funding package worth approximately A$1.6 billion for the project.
Q3: When will production begin at Nolans?
First production is expected from mid-2029, with construction beginning in September 2026.
Q4: Why are rare earths important?
Rare earth minerals are critical for manufacturing electric vehicles, wind turbines, defence systems and advanced electronics.
Q5: Who are Arafura’s major customers?
Arafura has secured supply agreements with Hyundai, Kia, Siemens Gamesa and Traxys.
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