Siemens Gamesa to source rare earths from Australia

Australian mineral exploration company Arafura Rare Earths Ltd (ASX:ARU) announced today a contract under which Siemens Gamesa Renewable Energy A/S will purchase NdPr oxide to make permanent magnets for its offshore wind turbines.

The Perth-based company said in a statement that starting from 2026, Siemens Gamesa will be buying 200 tonnes per year of NdPr (Neodymium-Praseodymium), increasing to 360 tonnes in year two and 400 tonnes in years three to five. If mutually agreed, Siemens Gamesa will be able to extend the initial contract for a further two years.

The existing agreement establishes that pricing, in US dollars, will be contractual “but broadly determined referencing the NdPr Ex Works China price per tonne.”

Siemens Gamesa intends to use the purchased NdPr for the manufacture of permanent magnets used in the assembly of offshore wind turbines at the company’s Cuxhaven production facility in Germany.

The NdPr will be sourced from Arafura’s rare earth ore to oxide mine and processing site in the Northern Territory, known as the Nolans Project. The construction of this facility is dependent on the successful completion of negotiations with German export credit agency Euler Hermes for an untied loan guarantee of up to USD 600 million (EUR 550.8m). A non-binding letter of in-principle support is already in place.

Arafura expects the Nolans Project to achieve its first production in 2025 and to finalise its ramp-up to 4,440 tonnes per year in 2028. Nolans has received Major Project Status from the Northern Territory government.

(USD 1.0 = EUR 0.918)

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