Arafura Rare Earths Ltd. has executed binding equity agreements with two cornerstone investors to secure AU$230 million, marking another step toward a final investment decision for its Nolans rare earths project in the Northern Territory.
The company received backing from both domestic and international government agencies, highlighting the necessity of diversifying global rare earth supply chains.
The subscriptions include €50 million (AU$84 million) from Kreditanstalt für Wiederaufbau (KfW) on behalf of the German Raw Materials Fund and US$100 million (AU$146 million) from Export Finance Australia (EFA).
The Nolans project is set to become Australia’s first fully integrated ore-to-oxide rare earths operation. This integration is a critical component of the Western world’s strategy to reduce reliance on concentrated international supply sources for neodymium-praseodymium (NdPr), the essential ingredients for high-strength permanent magnets.
The project has a binding offtake agreement with Siemens Gamesa Renewable Energy for the supply of NdPr for the manufacturing of permanent magnets for offshore wind turbines assembled in Germany.
Arafura Managing Director, Darryl Cuzzubbo said: “The execution of binding equity subscriptions from these two government agencies is a powerful endorsement of the strategic importance of Nolans to Western supply chains.
“This outcome is consistent with our long-stated equity funding strategy of partnering with government-seeded critical minerals finds, customers and strategic investors who share our vision for developing a reliable, and diversified source of rare earth supply.
This latest capital injection brings Arafura’s total binding commitments and recently raised equity to AU$911 million.
This includes a AU$481 million raising completed in the fourth quarter of 2025 and a AU$200 million convertible note agreement with Australia’s National Reconstruction Fund Corporation (NRFC).
The cornerstone investors will subscribe for shares at 24.47 cents per share. Upon completion, KfW will also gain the right to nominate a director to the Arafura Board.
The company is focused on finalising debt arrangements and remaining offtake targets.
The cornerstone equity commitments position Arafura closer to achieving final close on the Nolans project
