Australian Mining Stocks Surge After $8.5 Billion U.S. Minerals Deal

Sydney: Shares of Australian critical minerals and rare earth companies jumped on Tuesday after the United States and Australia signed a major $8.5 billion minerals partnership to strengthen supply chains for strategic metals.

The deal, signed by U.S. President Donald Trump and Australian Prime Minister Anthony Albanese in Washington on Monday, will fund projects that secure materials essential for defense manufacturing, clean energy, and technology production.

Among major gainers, Iluka Resources rose more than 9%, Lynas Rare Earths climbed 4.7%, and Pilbara Minerals added about 5%. Smaller producers also saw sharp rallies — VHM surged 30%, Northern Minerals jumped 16%, and Latrobe Magnesium soared 47%.

Alcoa, which is developing a gallium recovery project in Western Australia, was named a priority project under the new partnership. The U.S. government will take an equity stake in the initiative. Alcoa’s shares rose nearly 10% in early trade.

The White House said both countries will invest over $3 billion in critical mineral projects within the next six months, including $2.2 billion in financing from the U.S. Export-Import Bank, which could unlock up to $5 billion in total funding.

China currently dominates global rare earth production but has tightened export controls amid escalating trade tensions with Washington, prompting efforts to diversify supply chains.

Albanese said the deal will accelerate joint investment in projects “immediately available,” adding that Australia will contribute $1 billion over the coming months to boost domestic output.

The partnership marks a significant step toward reducing dependence on Chinese minerals, reinforcing Australia’s role as a key supplier of strategic resources to the U.S. and its allies.