Arafura Rare Earths has begun construction of its Nolans rare-earth mine and processing complex in Australia, moving the project into physical development following its final investment decision and the completion of financing and permitting work. The groundbreaking took place. Nolans is designed to produce approximately 4,440 tonnes of neodymium-praseodymium (NdPr) oxide annually, with first production targeted for 2029.
NdPr oxide is used to manufacture high-performance permanent magnets required in wind turbines, electric vehicles, industrial motors and defence applications. The project is positioned as a source of these magnet materials outside China, with European public-sector investment and industrial demand linked to its development.
German Capital and European Offtake Agreements
Germany’s KfW has signed a binding €50 million equity subscription agreement on behalf of the German Raw Materials Fund, providing German government-backed capital to the project. Arafura has also secured a binding supply agreement linked to Siemens Gamesa, establishing a commercial connection between Australian rare-earth production and Europe’s wind-turbine supply chain. Both arrangements were agreed before the October 8 groundbreaking and form part of the project’s existing financing and commercial framework.
The construction announcement does not include new financing. Instead, it marks the start of physical development supported by previously established capital and supply arrangements.
Australian Public Support Package
Australia has separately assembled a broader public-support package valued at approximately €745 million equivalent, covering loans, equity and strategic-support mechanisms. The figure represents several previously announced instruments rather than a single newly disbursed construction grant. Together with the German equity subscription and the supply agreement linked to Siemens Gamesa, these arrangements connect Nolans with public capital and a European industrial customer.
The project’s development comes as European manufacturers remain heavily dependent on China for rare-earth mining, separation and magnet supply. Nolans combines Australian upstream production with German government-backed investment and an established commercial link to a major European wind-turbine industry participant.
Construction and Production Milestones
With construction under way, Arafura must deliver the project according to schedule, commission the processing plant and increase production to the required specifications before reaching its targeted first output in 2029. Nolans has therefore moved beyond its earlier financing and permitting stages into construction, with binding European capital and commercial arrangements already in place. Its planned annual production of 4,440 tonnes of NdPr oxide is intended to supply a key raw material for permanent-magnet manufacturing.
