Arafura Rare Earths has finalised agreements with Australia’s National Reconstruction Fund Corporation for approximately $145 million in government support, bringing the total equity and equity-like commitments secured for its Nolans rare earths project in the Northern Territory to around $659 million.
The agreements formalise a commitment whose key terms were first established in January 2025, with the final contracts now completed and the conversion price at which government support could be transformed into Arafura shares also defined. The National Reconstruction Fund Corporation is a state-owned body established to support domestic manufacturing and industrial capability.
The latest milestone follows binding commitments secured in April 2026 from Germany’s raw materials fund and Export Finance Australia, which together significantly expanded the project’s financing base. The Nolans project is planned to become Australia’s first facility to combine rare earth mining with downstream processing at a single integrated site — a distinction that has attracted attention from governments seeking to build rare earth supply chains outside China.
Despite the progress, several key steps remain before full financing can be achieved and a final investment decision made. Major project loan agreements still need to be finalised, shareholders must be engaged, and all conditions precedent to the investment decision must be satisfied.
Arafura is seeking to supply neodymium-praseodymium oxide for use in permanent magnets for electric vehicle motors and wind turbines, with planned output of 4,440 tonnes per year from the second half of 2029.
