GE Signs Deal With Arafura, Eyes Rare Earths For EV & Wind Turbines

Arafura Resources Limited and GE Renewable Energy have signed an MoU to forget a partnership in the set up of a sustainable supply chain for Neodymium-Praseodymium (NdPr) central to energy transition. The parties are looking at negotiating a long-term sales agreement for GE to purchase NdPr from Arafura’s Nolans Project in central Australia.

The agreement was unveiled during the Sydney Energy Forum, a high-level summit hosted by the Australian Government and the International Energy Agency (IEA) focused on securing clean energy supply for the Indo-Pacific.

Located in the Northern Territory of Australia, the Nolans Project is an important resource worldwide for NdPr. It boasts of the capacity required  to strengthen a value chain supplying close to 5 per cent of the global demand over a projected life of mine of 38 years that has potential for expansion. Including an ore to oxide business model that entails waste management certainty, it gives customers a transparent and traceable product supply chain.

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Rare earths are key materials for neodymium magnet (NdFeB) magnets. These are employed in Electric Vehicles and clean energy technologies, and the magnets are a critical ingredient for offshore wind industry. More than 600kg of NdFeB magnets for each MW of wind turbine generation capacity are used in the industry. “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 company statement said.

The MoU identifies the strategic nature of NdPr, a critical mineral required in the manufacture of high performance NdFeB permanent magnets and traces the path for GE and Arafura to work in unison in the establishment of a diversified and sustainable supply chain. It is critical to the energy transition objectives of GE customers in the EU, US and Australia.

Arafura’s Managing Director and CEO, Gavin Lockyer, said, “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.”

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GE Renewable Energy Vice President, Chief Technology Officer Danielle Merfeld, stated, “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.”

GE Renewable Energy had revealed in October last year that it had signed a non-binding MoU with General Motors to explore opportunities to strengthen supplies of heavy and light rare earth materials and magnets, copper and electrical steel employed in the manufacture of EVs and renewable energy equipment.