Yeah....surely the JV partner is US based? To take advantage of all the Trump cash.....surely....
Maybe it’s USA Rare Earth. Had this discussion with another member last night. Here’s what u found.
Arafura’s Nolans Project (Australia)
Arafura Resources is developing the Nolans Project in Australia’s Northern Territory—a world-class NdPr resource with an integrated mine-to-oxide facility. At full capacity, it aims to produce ~4,400 t/yr of NdPr oxide and 600–700 t/yr of SEG-HRE (middle/heavy rare earths). Backed by ~$200M in Australian government equity and nearly $1B in debt from EFA, NAIF, and the Critical Minerals Facility, Nolans is de-risked and shovel-ready. Binding offtakes are in place with Hyundai, Kia, Siemens Gamesa, and Traxys. With two-thirds of production contracted, the remaining challenge is securing final equity to move into construction.
USA Rare Earth (USAR)
USA Rare Earth is building a domestic rare earth supply chain in the U.S. It was originally a funder of the Round Top project (heavy rare earths) and now focuses downstream, including NdFeB magnet production and rare earth oxide separation. It plans to produce ~5,000 t/yr of REOs at its upcoming Oklahoma plant by 2026. With partnerships (e.g. PolarStar Magnetics) and DFARS compliance, USAR is positioning to supply defense, EV, and clean tech sectors—but it lacks upstream NdPr supply. Round Top is still in development and more focused on heavies.
Why It Makes Sense
- Supply Chain Integration: Arafura can supply the NdPr feedstock USAR needs. A JV would vertically integrate mining in Australia with magnet production in the U.S.—a model both governments support.
- Complementary Product Mix: Nolans focuses on light REEs (Nd, Pr), while Round Top offers heavies (Dy, Tb, Y). Together, they span the full REE spectrum.
- Aligned Strategic Goals: Both aim to build non-Chinese REE supply chains. A JV aligns with U.S.-Australia critical minerals cooperation mandates and may attract further government backing.
- Financing Synergy: Arafura needs equity capital to bridge its funding gap. USAR, already raising capital via its upcoming NASDAQ listing, could fill that role and gain equity in a de-risked project.
- Technical Collaboration: USAR’s proprietary separation tech (CIX/CIC) could add long-term process optionality.
- Market Access: USAR's U.S. magnet ambitions open new customer channels for Arafura, particularly in defense and EV sectors. A JV could lead to Arafura’s NdPr entering U.S. strategic reserves or long-term offtake deals.
Past Collaborations
- In 2019, Arafura signed an LOI with USAR to process SEG-HRE carbonate at a Colorado pilot plant. This validated USAR’s separation tech and showed Arafura's willingness to partner on downstream processing.
- The press release explicitly cited alignment with the U.S.-Australia critical minerals strategy.
- The 2020 pandemic likely delayed the definitive agreement, while both parties focused on internal development (e.g., USAR acquiring a U.S. magnet plant, Arafura finalizing project debt).
- Despite no formal JV emerging then, lines of communication remain open, and strategic alignment persists.
Other Considerations
- Arafura also signed an MoU with Canada’s SRC in 2024 to process its heavies. This doesn’t conflict with a USAR partnership, as different partners can support different parts of the value chain (e.g., NdPr to USAR, SEG/HRE to SRC).
- USAR’s investor base and Arafura’s (e.g. Hancock Prospecting, Australian government) include aligned institutional backers. Any overlap would strengthen JV prospects.
- Both firms likely engaged in overlapping government dialogues and DoD tender processes, reinforcing strategic ties.
Conclusion
All signs point to USA Rare Earth being Arafura’s unnamed JV partner mentioned in the most recent quarterly. The logic is sound: Arafura brings a ready-to-go NdPr supply, while USAR offers processing, magnet production, and U.S. market integration. This partnership would secure critical inputs for U.S. industries while solving Arafura’s equity gap—minimizing shareholder dilution and accelerating FID.
Past collaborations show trust and technical compatibility. Geopolitical urgency in 2025 makes the partnership even more relevant. If confirmed, the JV will link Australian mining with U.S. manufacturing in a vertically integrated magnet supply chain—a model example of Western cooperation to break China’s monopoly on rare earths.
