Iluka Resources (ASX:ILU) struck a binding agreement to supply magnet rare earth oxides including neodymium, praseodymium, dysprosium, and terbium to an unnamed automotive company, according to a Monday statement filed with the Australian bourse on Tuesday.

The take-or-pay offtake agreement starts in 2028 for an initial term of four years, and represents about 10% of Iluka's planned production over that period, or 1,200 tonnes of magnet rare earth oxides.

The company said it expects revenue over the contract period to range from $155 million to $172 million, with pricing set at the higher of minimum and market-linked prices for each product "to balance the dual risks of downside price volatility and security of supply."

In a separate statement, Iluka said Export Finance Australia confirmed the company's access to the full AU$1.65 billion non-recourse loan provided by the Australian government to construct the Eneabba rare earths refinery in Western Australia.

The refinery is over 50% complete, and Iluka expects the first tranche of the funding in the amount of AU$1.25 billion to be fully drawn at the end of the year, at which point the refinery is expected to be 75% complete.

The refinery's commissioning is scheduled for mid-2027, and Civmec (ASX:CVL) has been awarded a contract for structural, mechanical, piping, electrical, and instrumentation works at the site.