Arafura Rare Earths’ Nolans project: A critical minerals shift in Australia’s red heart

Arafura Rare Earths’ (ASX: ARU) Nolans project is a US$1.2b rare earths project that will be built 135km north of Alice Springs in Central Australia.

It is set to be the first large-scale rare earths project of its kind in Australia, with full mining approval granted by both Federal and Northern Territory Governments.

Once operational, Nolans will produce 4,440tpa of neodymium-praseodymium (NdPr) over its projected mine life of 38 years. These rare earth elements are key components in high-performance magnets.

The project will also produce phosphoric acid as a by-product, thereby adding further value.

What rare earths make the Arafura Nolans project so important?

Rare earth elements (REE) are commonly found in the earth’s crust but few deposits are economically viable. Even fewer can be processed cost-effectively.

Indeed, Nolans stands out as one of the world’s largest and best-defined rare earths deposits.

The orebody is particularly rich in NdPr. When alloyed, these two elements form rare earth permanent magnets that are three times stronger and one-tenth the size of conventional magnets.

They are critical to the manufacture of electric vehicle motors, wind turbine generators, robotics, smartphones and MRI machines.

But, at present, China produces more than 90% of NdPr and 94% of NdFeB magnets.

When Nolans comes online, it will provide approximately 4% of global NdPr supply, supporting critical minerals diversification and reducing reliance on a single jurisdiction.

The proposed site of Arafura Rare Earths’ (ASX: ARU) Nolans project, where Delonix Solutions helped engineer a smarter plant layout to deliver more value from the ground up.

Strategic value far beyond its size

Global demand for rare earths is projected to nearly double by 2037. This growth is driven by decarbonisation, electrification and manufacturing advances.

The Nolans project will help meet this demand, contributing to the world’s Net Zero goals.

Arafura has adopted a single-site ore-to-oxide model, improving ESG traceability and offers customers a fully integrated solution.

This model also makes Nolans a strong candidate for Phase 2 expansion and a future third-party processing hub for monazite concentrates.

In terms of market traction, Arafura has secured binding offtake agreements with Hyundai, Kia, Siemens Gamesa and Traxys Europe, with a Memorandum of Understanding in place with GE.

Currently, only 34% of product from Nolans remains uncontracted, with negotiations ongoing.

Nolans will also deliver local economic benefits, with 600 jobs during construction and a 350-strong operational workforce.

Why Nolans matters now

The global race for rare earths is intensifying and Australia is responding with speed.

Lynas Rare Earths recently became the only commercial producer of separated heavy rare earths products outside China. It confirmed first production of dysprosium oxide (Dy) and terbium oxide (Tb) in May and June 2025.

This milestone marks a shift on global supply dynamics. It underscores Australia’s technical leadership in critical minerals and at the same time highlights the urgency for more sovereign supply.

Right now, China still dominates rare earth production. Its recent export restrictions on key materials like Dy and Tb have amplified supply chain concerns for automakers and clean energy providers globally.

Arafura Rare Earths’ Nolans project could recalibrate the global rare earths narrative. Managing director Darryl Cuzzubbo comments on this in the company’s Q3 FY25 report.

“The importance of developing diversified rare earths and permanent magnet supply chains has been thrown into sharp focus by recent geopolitical events,” he said.

“Nolans remains the only significant, construction-ready, ore-to-oxide rare earths project in the world offering the potential to bypass the dominant Chinese supply chain.

“It’s the right project at the right time.”

He added that equity funding efforts, including backing from Australia’s National Reconstruction Fund, are progressing well ahead of the final investment decision (FID).

Delonix Solutions’ role in the Arafura Rare Earths’ Nolans project

Delonix Solutions played a key role in enabling the proposed $1b hydrometallurgical facility at Nolans. We were engaged during the engineering studies and early design phase, working alongside a Tier 1 EPCM contractor.

Our team contributed to rare earths engineering solutions that delivered tangible benefits by rethinking layout and constructability. These design decisions not only supported faster delivery but also aligned with Nolans’ ESG and lifecycle goals.

A rare earths project shaping global change

To learn more about how Delonix Solutions supports Australia’s next generation of rare earths engineering projects, click here to view the case study.

By Kathleen Southway

A quiet moment at day’s end. Delonix Solutions is proud to play a part in shaping this project into a globally significant source of critical minerals.