Iluka Inks Deal With Mystery Auto Maker

By the Editorial Team · Tuesday, June 23, 2026

Iluka Resources has signed a four-year offtake agreement starting in 2028 to supply rare earth oxides to a major global automotive company, securing at least US$155 million in revenue linked to its Eneabba refinery project in Western Australia. This deal underpins Iluka’s expansion into the critical minerals market essential for electric vehicle production, supported by a substantial Australian government loan to complete the refinery.

Iluka Resources has secured a four-year offtake agreement to supply magnet rare earth oxides to an unnamed global automotive company, marking a significant step in the development of its rare earths business. The contract, which begins in 2028, is expected to generate at least US$155 million (A$223 million) in revenue, with potential earnings rising to US$172 million based on industry price forecasts.

The deal covers key rare earth elements including neodymium, praseodymium, dysprosium, and terbium, which are critical components used in electric vehicle motors and other high-tech applications. The buyer will procure approximately 1,200 tonnes, accounting for about 10 percent of Iluka’s planned production over the period. These volumes align with the scheduled commissioning and ramp-up of Iluka’s Eneabba refinery in Western Australia, currently over 50 percent complete, with full commissioning expected in 2027.

Iluka’s managing director, Tom O’Leary, described the agreement as “a particularly important milestone,” highlighting that the company’s first customer in this sector is a “globally recognised automotive company.” He emphasized that the contract includes minimum price guarantees alongside market-linked pricing, intended to mitigate the risks of price volatility while ensuring supply security.

The offtake is structured on a take-or-pay basis, in a like-minded nation, signaling a long-term partnership aimed at strengthening supply chain reliability for critical minerals. O’Leary noted that the agreement covers both light and heavy magnet rare earth oxides, and that pricing arrangements have been negotiated independently of government frameworks.

In a related development, Iluka confirmed that Export Finance Australia (EFA) has approved access to the full A$1.65 billion non-recourse loan from the Australian Government to fund the construction of the Eneabba refinery. The company expects to draw Tranche 1 of A$1.25 billion by year-end, coinciding with the refinery reaching approximately 75 percent completion. EFA has also confirmed the availability of the remaining A$400 million to finalize the project. Additionally, Civmec has been awarded the contract for the structural, mechanical, piping, electrical, and instrumentation work at Eneabba.

Despite these positive developments, Iluka’s share price fell by nearly 11 percent, closing at A$7.25, reflecting market reactions to the announcement.

The Eneabba refinery project and the offtake deal position Iluka as a growing player in the rare earths sector, a vital component of the global transition to clean energy technologies and electric vehicles. However, specific commercial details remain confidential, and the identity of the automotive partner has not been disclosed.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.