4C Offshore Empowering Intelligence

GE Renewable Energy and Arafura Resources ink rare earths MoU

4C Offshore | Tom Russell
By: Tom Russell 13/07/2022 GE

Arafura Resources Limited and GE Renewable Energy have signed a non-binding memorandum of understanding (MoU) to jointly co-operate in the establishment of a sustainable supply chain for Neodymium and Praseodymium (NdPr) Rare Earths. The parties will negotiate a long-term sales agreement for GE to purchase NdPr from Arafura’s Nolans Project in central Australia.

The definitive and binding offtake agreement would be subject to key customary conditions being satisfied, including:
Arafura securing project funding to develop the Nolans Project; and completion of construction, development and commissioning of the Nolans Project.

The MoU also outlines a potential strategic equity investment by GE in Arafura that will be considered and negotiated in due course.


Rare earths are essential materials for NdFeB magnets used in EVs and clean energy technologies, with magnets an essential component for the offshore wind industry, consuming over 600kg of NdFeB magnets for every MW of wind turbine generation capacity. A secured rare earths supply for GE de-risks the magnet value chain, provides supply security and supports the growth of the local offshore wind sector.


The MoU recognises the strategic nature of NdPr, a critical mineral required in the manufacture of high performance NdFeB permanent magnets and charts a path for GE and Arafura to jointly co-operate in the establishment of a diversified and sustainable supply chain.


Arafura is focused on establishing itself as GE’s preferred NdPr partner for renewables in the EU, US and other key markets. Having GE as another foundational offtake partner will provide Arafura with product sales diversification both geographically and into new sectors like the offshore wind turbine market.

Commenting on the MoU, Arafura’s Managing Director and CEO, Gavin Lockyer, said: “The signing of this MoU to collaborate with a Tier 1 OEM is a terrific outcome. Long-term Nolans NdPr may be used in magnets critical for power generation from GE’s Haliade-X 12 MW, one of the most powerful offshore wind turbines on the market. It is very gratifying that a new supply chain model, along with transparency of the value chain, will ensure we know exactly where our NdPr will be used, whether it is in a particular EV model or a series of wind turbine. The contribution of Nolans NdPr to enable clean energy technologies to decarbonise the world is becoming more and more apparent.”.


GE Renewable Energy Vice President, Chief Technology Officer Danielle Merfeld, said, “This MoU is another example of our efforts to develop strategic collaborations that can help us accelerate the energy transition. Working with Arafura gives us a new and exciting option to obtain reliable, sustainable, and competitive sources of key materials going forward that will help us lower the cost of renewable energy.”


Premium

ForeSEE Premium, our most popular subscription, gives you full access to use the ForeSEE WebApp which includes exclusive offshore wind, transmission and vessel reports, news and downloads.

Request a 30 minute Demo

Trending News!