Australian critical metal companies surge on $8.5 billion U.S. deal
U.S. President Donald Trump and Australian prime minister Anthony Albanese shake hands outside the West Wing of the White House in Washington, DC, USA, on Monday, October 20, 2025.
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Shares in some of Australia’s largest critical metals and rare earth companies rose on Tuesday following the announcement of a massive mining deal worth up to $8.5 billion between Washington and Canberra.
The agreement, signed by US President Donald Trump and Australian Prime Minister Anthony Albanese on Monday, includes funding for numerous projects aimed at increasing the supply of essential materials used in defense production and energy security.
Lynas Rare EarthsAustralia’s largest producer of rare earths by market value, was up about 4.7% in early Asian trading. mineral sand miner Iluka Resources Lithium producer advances more than 9 percent Pilbara Minerals added about 5%.
Other smaller rare earth miners also made gains VHM While it increased by around 30 percent, Northern Minerals rose above 16 percent. Meanwhile, the price of Latrobe Magnesium, Australia’s main producer of the critical metal magnesium, is up nearly 47%.
Listed on NYSE alcoaThe company, which is developing a project to recover and refine the critical metal gallium in Western Australia, has been identified as one of two priority projects under the new mining agreement. Washington will invest capital in the venture.
Alcoa’s shares traded via depositary receipts on the Australian Securities Exchange rose nearly 10%.
Rare earths and critical metals are essential for high-tech products such as electric vehicles, semiconductors and defense equipment.
China, a world leader in the production of rare earth elements and many other critical minerals, has stepped up international efforts to diversify global supply chains by tightening export controls on materials amid a trade war with the United States.
Albanese said the two countries would contribute $1 billion to “immediately ready” projects over the next six months.
But a memo from the White House later described the deal as a “framework”, saying Washington and Canberra would invest more than $3 billion in critical mineral projects over the same period.
The White House also said the Export-Import Bank of the United States will issue seven letters of interest for more than $2.2 billion in financing, potentially unlocking up to $5 billion in total investment.
