Traxys North America LLC has entered into a binding offtake term sheet with Arafura Rare Earths Limited (ASX: ARU) to support the development of resilient rare earth supply chains serving key manufacturing sectors in the United States. The agreement includes the supply of Neodymium-Praseodymium (NdPr) oxide and Dysprosium-Terbium (DyTb) oxide from Arafura’s Nolans Project in Australia, reinforcing ongoing efforts to strengthen critical minerals ecosystems across North America and allied markets.

Highlights

• Traxys North America LLC enters into a binding term sheet with Arafura Rare Earths Limited for the supply of:
  • 500 tonnes per annum (tpa) of NdPr oxide
  • 7.5tpa of DyTb oxide
• Agreement supports the revitalisation and onshoring of domestic manufacturing across automotive, defence, and advanced technology sectors in the United States
• Potential integration into U.S. supply chains associated with US EXIM-managed Project Vault initiatives
• Pricing linked to independent and transparent global seaborne indices
• Initial five-year term with an option to extend by mutual agreement
• Agreement remains subject to customary conditions precedent, including long-form documentation and Final Investment Decision (FID) for the Nolans Project

Traxys North America LLC and Arafura Rare Earths Limited have executed a binding term sheet establishing a long-term supply arrangement for rare earth oxides produced from Arafura’s Nolans Project.

Under the agreement, Traxys intends to support the distribution of these materials into U.S. supply chains serving strategic manufacturing sectors, including automotive, defence, and advanced technologies. The arrangement may also support supply initiatives connected to US EXIM-managed Project Vault.

The agreement is separate from and in addition to the existing March 2025 offtake arrangement between Arafura and Traxys Europe SA for the supply of up to 300tpa of NdPr oxide.

Key commercial terms include pricing in U.S. dollars based on independent global seaborne rare earth pricing indices, including Benchmark Minerals Intelligence indices or S&P Global Platts North America pricing benchmarks. The parties expect to finalise a long-form offtake agreement within six months, subject to customary conditions precedent, including Arafura undertaking a Final Investment Decision for the Nolans Project.

Arafura Managing Director Darryl Cuzzubbo stated:

We have long believed that the right partners would define the quality and durability of Arafura. 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.

About Traxys

TRAXYS is a physical commodity trader and merchant in the metals and natural resources sectors. Its logistics, marketing, distribution, supply chain management, and trading activities are conducted by over 500 employees in over 20 offices worldwide, and its annual turnover reaches USD 10 billion. TRAXYS is engaged in sourcing, trading, marketing, and distributing non-ferrous metals, ferro-alloys, minerals, industrial raw materials, and energy.

The Group serves a broad base of industrial customers and offers a full range of commercial and financial services. TRAXYS is committed to the highest internationally recognized principles for responsible business conduct, and to ensuring that its operations are equitable, sustainable, and transparent.

TRAXYS premises its practices on environmental, social, and governance (ESG) standards that enable Traxys to set a leading example for the responsible sourcing and trading of metals and minerals.

Please visit www.traxys.com for more information.