Shares of Australian rare earth companies rise on $8.5 billion US critical minerals deal

Shares in some of Australia’s biggest critical metals and rare earths companies rose on Tuesday after the announcement. Dealing in bulk minerals Up to $8.5 billion between Washington and Canberra.

Treaty – Signed by US President Donald Trump And on Monday Australian Prime Minister Anthony Albanese – including funding for several projects aimed at increasing supplies of key materials used in defense production and energy security.

Lynas rare earthAustralia’s largest rare earth producer by market capitalization rose about 4.7% in early Asia trade. Mineral sand miner Iluka Resources Advanced over 9% while lithium producers Pilbara Minerals Added approximately 5%.

Other smaller rare earth miners also profited VHM About a 30% increase, then North Minerals Over 16% pop. Meanwhile, Latrobe Magnesium, Australia’s primary producer of heavy metal magnesium, rose nearly 47%.

NYSE-listed AlcoaIt is developing a project to recover and refine the vital metal gallium in Western Australia, identified as one of two priority projects under the new minerals deal. Washington will make an equity investment in the venture.

Alcoa shares rose nearly 10% on the Australian Securities Exchange traded on depository receipts.

High-tech products such as electric vehicles, semiconductors, and defense equipment require rare earths and critical metals.

China, the world leader in the production of rare earths and many other critical minerals, has tightened export controls on the material amid a trade war with the US and accelerated international efforts to diversify global supply chains.

Albanese said the two countries would contribute $1 billion each over the next six months for “immediately available” projects.

However, a White House fact sheet later stated that Washington and Canberra would invest more than $3 billion in significant mineral projects over the same period, describing the agreement as a “framework”.

The White House also said the Export-Import Bank of the United States would issue seven letters of interest for more than $2.2 billion in financing, potentially unlocking up to $5 billion in total investment.