Arafura Rare Earths has made a final investment decision (FID) for its Nolans Rare Earths Project in Central Australia, marking one of the most significant milestones in the Northern Territory's industrial history.
Located around 135kms north-east of Alice Springs, the Nolans Project will become Australia's first fully integrated ore-to-oxide rare earths operation - extracting, processing and refining rare earth products entirely within the Northern Territory.
Construction is targeted to commence from September 2026, with the project forecast to be operational by late 2029.
Jobs and economic growth for the Territory
The project will generate more than 600 construction jobs and approximately 350 permanent operational roles, delivering long-term employment opportunities for Territorians.
Independent economic analysis forecasts the project will contribute more than $25 billion to gross Territory product over its planned 38-year mine life - with flow-on benefits for Territory businesses across logistics, engineering, construction, transport, accommodation and training.
Arafura has also committed to maximising local and Indigenous workforce participation through culturally appropriate training pathways and active engagement of Northern Territory businesses through the Industry Capability Network.
Strategic importance for Australia
The Nolans Project arrives at a pivotal moment in global critical minerals markets.
Countries including the United States, Germany, Canada and South Korea are accelerating efforts to reduce reliance on single-source supply chains for rare earth materials - and Australia is positioning itself at the centre of this realignment.
The project will produce neodymium-praseodymium oxide (NdPr), a critical input for the permanent magnets used in electric vehicles, wind turbines and advanced defence technologies.
Once operational, Nolans is projected to supply up to 5% of global rare earth demand, providing allied nations with a sovereign-aligned alternative to concentrated offshore supply.
The Australian Government has backed the project with up to $840 million through the Northern Australia Infrastructure Facility, a $200 million investment from the National Reconstruction Fund Corporation, and a non-binding letter of support under the new Critical Minerals Strategic Reserve for up to 500 tonnes per annum of NdPr oxide.
The project also benefits from binding financing commitments from institutions in South Korea, Germany and Canada, and offtake agreements with global manufacturers including Hyundai, Kia and Siemens Gamesa.
A new industrial ecosystem
Beyond the mine itself, Arafura's single-site processing model positions the Northern Territory as a potential hub for a broader domestic rare earths industry.
Phase 2 studies indicate the Nolans facility could reduce capital requirements for emerging Australian rare earths developers, cementing the Territory's role at the centre of a new critical minerals industrial ecosystem.
The FID signals growing global confidence in the Northern Territory as a destination for strategic investment - and confirms the Territory's place in securing the clean energy and defence supply chains that will define the decades ahead.