US-Australia agreement

Australian critical minerals and rare earths companies surged after a new US-Australia agreement to bolster essential material supply chains for defense and energy security. The deal, potentially worth $8.5 billion, spurred stock increases in companies like Lynas Rare Earths, Iluka Resources, and Pilbara Minerals. Smaller miners also saw significant gains. Alcoa, developing a gallium project in Western Australia, received a US equity investment commitment. The agreement aims to diversify sourcing amid concerns over China’s dominance and supply chain vulnerabilities. The US Export-Import Bank will also issue letters of interest for financing.