Arafura Rare Earths Ltd, page-724

in a Short Version, which to be fair can not reflect all the problems Arafura is going through and the multi-dimensions of decisions needed since 16 years, but anyhow as a short version: for long time we discuss offtakes are needed to attract Investors or secure financing, on the other side a clarity that Arafura will get into production at point x in time is expected from the potential customers to safeguard their very own production plans.

just as an example (scenario)

you are obliged to supply 176 15MW wind turbines to coastal Virginia offshore wind, the then largest offshore in US.
https://www.offshorewind.biz/2024/05/23/first-monopile-stands-at-largest-us-offshore-wind-farm/

probably a lot of LC on late delivery or any other non fulfillment of supply contracts in such a multi billion project.

so you have your offtakes (in this example Siemens Gamesa has it).

you need to rely that you materials supplier will be able to supply.

in Europe more stricter supply chain rules / transparency come into place. Sourcing in china will become a hassle in the future.

you know where I am heading. This is arafuras advantage (and any other western supplier). To offer the rest of the world independence from china.

but no one can wait for ages. Therefore speed.