Corrected: UPDATE 2-US, Australia to invest $2 billion in critical minerals, advance Alcoa gallium project (October 21)

VHM

21/10/2025 24:49

 (Corrects paragraph 8 in October 21 story to say gallium is a
byproduct of alumina refining process, not a raw material used
to produce alumina)
    SYDNEY, Oct 21 (Reuters) - The United States and Australia
extended financial support to several Australian companies as
part of a wide-ranging critical minerals agreement aimed at
countering China's hold over the industry, sending the firms'
shares sharply higher on Tuesday.
    Under the deal signed by U.S. President Donald Trump and
Australian Prime Minister Anthony Albanese, the countries
pledged to invest at least $1 billion each over the next six
months in mining and processing projects and to set a price
floor for critical minerals, a step long sought by Western
miners.
    The U.S. Export-Import Bank (EXIM) said it sent seven
Letters of Interest (LOIs) totalling more than $2.2 billion to
advance U.S.-aligned critical minerals projects in Australia. 
    The LOIs went to Arafura Rare Earths  ARU.AX , Northern
Minerals  NTU.AX , Graphinex, Latrobe Magnesium  LMG.AX , VHM
 VHM.AX , RZ Resources and Sunrise Energy Metals  SRL.AX . They
represent the next phase in securing the minerals that power
American manufacturing, national security, and other strategic
industries, EXIM said in a statement.
    Shares of Arafura were up 8% in morning trading, while
shares of Northern Minerals, Latrobe Magnesium, and VHM jumped
11%, 15% and 20% respectively, although Sunrise was trading
lower. That compared with a broader market  .AXJO  gain of 0.7%.
    The governments said they would also help advance a plan by
U.S. aluminium producer Alcoa  AA.N  to build a gallium plant
alongside its alumina refinery in Western Australia that could
provide up to 10% of global gallium supply. 
    That announcement pushed Alcoa's Australian-listed shares 8%
higher.
    Gallium, recovered as a byproduct during the alumina
refining process, is a critical mineral for the technology
sector, especially the semiconductor and defense industries.
    Australia said in a statement that it would provide up to
$200 million in concessional equity financing for the project,
which includes offtake rights for the Australian government,
while the U.S. would also make an equity investment with offtake
rights.
    Alcoa in August signed a joint development agreement with
Japan Australia Gallium Associates (JAGA), a venture between the
Japanese government and Sojitz Corp  2768.T , for the project. 
    The company said that once it finishes feasibility work, a
special purpose vehicle owned by the U.S. and Australian
governments and Alcoa is expected to enter a joint venture with
JAGA to construct the plant, which Alcoa would operate. 

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FACTBOX-US bets on Australian miners to break China's grip on
critical minerals supply     urn:newsml:reuters.com:*:nL6N3W10TF
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 (Reporting by Melanie Burton and Byron Kaye in Sydney; Writing
by Praveen Menon; Editing by Jamie Freed)
 ((Anshuman.Tripathy@thomsonreuters.com;))