Critical minerals stocks soar on billion-dollar US-Australian pact
ASX-listed critical minerals stocks are on a tear after the US-Australian agreement to jointly invest $US2 billion ($3.1b) in Australian projects, including two in WA.
The wide-ranging deal includes funding support by the Export-Import Bank of the US and Export Finance Australia for Australian companies targeting rare earths, graphite, magnesium, titanium and scandium.
The Gina Rinehart-backed Arafura Rare Earths’ Nolans project in the Northern Territory and Alcoa’s gallium project in WA have been prioritised with immediate funding, including a $US100m equity investment in the former by the Australian Government.
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By continuing you agree to our Terms and Privacy Policy.The US has also paved the way to invest in projects being pursued by Northern Minerals, Graphinex, La Trobe Magnesium, VHM, RZ Resources and Sunrise Energy Metals.
“The supported projects span a range of critical minerals, including rare earth elements, graphite, magnesium, titanium, and scandium, each essential to advanced defense systems, aerospace components, communications equipment, and next-generation industrial technologies,” EXIM said after the meeting between Australian Prime Minister Anthony Albanese and US President Donald Trump in Washington overnight Monday.
“By supporting these materials, EXIM is directly contributing to the resilience of US defense supply chains and the reindustrialisation of America’s high-tech manufacturing base,” it said.
Arafura Rare Earths was up 17 per cent in early trading, while Northern Minerals, which is pursuing development of the Browns Range rare earths project in the East Kimberley, was 7 per cent better.
Alcoa was a top-five mover, adding 7.7 per cent.
Rare earths miners Iluka Resources and Lynas Rare Earths also rode the wave of market euphoria, adding 5 per cent and 1.8 per cent, respectively.
The EXIM support is in the form of letters of interest indicating potential debt funding for the targeted companies for projects seen as breaking China’s stranglehold on critical minerals that have become increasingly important in the energy transition and defence manufacturing.
More to come.
Originally published as Critical minerals stocks soar on billion-dollar US-Australian pact
