Ann: Quarterly Activities Report and Appendix 5B, page-3

More than ten parties are in discussion with Arafura for greater than 260% of the 4,440 tpa NdPr oxide planned production with a view to secure 85% as binding offtake. Arafura has advanced commercial offtake discussions with several key parties required to meet the binding offtake volume and with coordinated strategic interest and upward revision of production plans, it is envisioned Arafura NdPr supply will be shared with fewer strategic offtake parties.
Automotive OEMs are restructuring and realigning plants towards inhouse EV traction motor manufacturing and how to de-risk their NdFeB magnet value chain and upstream supply risk. There is a growing consciousness that there are very few strategically advanced NdPr projects globally that can support a risk-managed solution at significant scale to address security of supply, geo-political risk, ESG, traceability and provenance. Arafura’s ESG initiatives, including a single site operation are seen very favourably. Most encouraging is the number of potential offtake parties engaging Arafura with a collaborative approach to secure their magnet supply chains, with consortium and investment interest in the value chain all being considered.
Triangular discussions are advancing between a European end user and their magnet suppliers to assess how Arafura’s NdPr metal can be processed to achieve a fully traceable final magnet product. NdPr metal samples from our tolling partner were supplied to the magnet suppliers for the purposes of pre-qualification of the metal sample and the magnet company has confirmed the quality and suitability for use in the final high end magnet product.

Demand up. Wider interest. NdPr spot price up.

Nice update ! Seems a not if but when scenario.