GE Renewable Energy has ventured into a partnership with Arafura Resources to jointly establish a sustainable supply chain for Neodymium and Praseodymium (NdPr) central to energy transition.
As part of the signed memorandum of understanding (MoU), the two companies will negotiate a long-term sales agreement for GE to purchase NdPr from Arafura’s Nolans Project in central Australia.
Located in Australia’s Northern Territory, the Nolans Project is a globally significant resource for NdPr with its capability of supporting a value chain supplying nearly 5 per cent of the global demand over a projected life of mine in 38 years with expansion potential.
The facility’s ore-to-oxide business model ensures efficient waste management capabilities, allowing it to provide customers with a transparent and traceable product supply chain.
The agreement will be subject to key customary conditions, including Arafura securing project funding to develop the Nolans Project and the completion of the construction and commissioning of the facility.
The venture also outlines a potential strategic equity investment by GE in Arafura that will be considered and negotiated in due course.
The GE-Arafura partnership is expected to strengthen the supply of sustainable materials critical to the energy transition objectives of GE customers in the European Union, the United States, and Australia.
The agreement will also help both companies build a supply chain of vertically integrated magnet manufacturing they can use in the manufacturing of electric vehicles and renewable energy technology in the future.
“This MoU is another example of our efforts to develop strategic collaborations that can help us accelerate the energy transition,” said Danielle Merfeld, vice president and chief technology officer at GE Renewable Energy.
“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,” Merfeld added.