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

VHM

21/10/2025 24:09

 (Corrects paragraph 7 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
have extended financial support to several Australian companies
as part of a wide-ranging critical minerals agreement signed on
Monday with an aim of countering China's hold over the industry.
    Under the agreement signed by U.S. President Donald Trump
and Australian Prime Minister Anthony Albanese, the two
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 governments would also help advance a plan by U.S.
aluminum producer Alcoa  AA.N  to build a gallium plant
alongside its alumina refinery in Western Australia, the company
announced in a statement. 
    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. 
    It said on Monday 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. 
    The parties would provide capital to the special purpose
vehicle and receive gallium offtake in proportion to their
interests. The plant would be expected to produce 100 metric
tons of gallium annually, Alcoa said.
    Gallium, recovered as a byproduct during the alumina
refining process, is a critical mineral for the technology
sector, especially the semiconductor and defense industries.
    Reg Spencer, mining analyst at Canaccord, said the move was
a positive development that could boost the prospects of
Australia-listed companies. 
    Meanwhile, the Export-Import Bank of the United States
(EXIM) announced it sent seven Letters of Interest (LOIs)
totaling more than $2.2 billion to advance U.S.-aligned critical
minerals projects in Australia. 
    The LOIs were issued to Arafura Rare Earths  ARU.AX ,
Northern Minerals  NTU.AX , Graphinex, Latrobe Magnesium
 LMG.AX , VHM  VHM.AX , RZ Resources  RRZ.AX  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.

 (Reporting by Anshuman Tripathy in Bengaluru and Melanie Burton
in Sydney; Writing by Praveen Menon; Editing by Jamie Freed)
 ((Anshuman.Tripathy@thomsonreuters.com;))