Arafura Rare Earths (ASX:ARU) unit Arafura Nolans Project signed a binding offtake term sheet with Traxys North America to supply 500 tonnes per annum of NdPr oxide, according to a Wednesday filing with the Australian bourse.
The agreement is separate from a previous deal with Traxys Europe, and its pricing will be based on an independent global seaborne index, per the filing.
It has a five-year term, with an option to extend by two years, and also includes an annual contract volume of 7.5 tonnes of DyTb oxide.
The supply will support the onshoring of domestic manufacturing across automotive, defense, and advanced technologies sectors in the US, the company said.