Arafura Rare Earths (ASX: ARU) announced today the signing of a binding offtake agreement with South Korean-based Hyundai Motor Company.
This follows the signing of the non-binding memorandum of understanding with Hyundai earlier this year. Kia Corporation (Kia) can make orders under the offtake agreement in its own right.
The offtake agreement is for the supply of NdPr from the Arafura's Nolans project to Hyundai over a seven-year term, which may be extended for a further five years by mutual agreement.
Supply of NdPr is currently anticipated to commence in calendar year 2025 subject to project financing, completion of construction and development and commissioning of the project.
