Shares of Australia’s top critical metals and rare earths companies soared on Tuesday after Washington and Canberra announced a landmark $8.5 billion minerals agreement.
The deal — signed by U.S. President Donald Trump and Australian Prime Minister Anthony Albanese — aims to strengthen global supply chains for key materials vital to defense manufacturing and clean energy technologies.
Lynas Rare Earths, Australia’s largest rare earths producer, rose 4.7%, while Iluka Resources gained 9% and Pilbara Minerals added 5%. Smaller players also rallied, with VHM soaring 30%, Northern Minerals jumping 16%, and Latrobe Magnesium surging 47%.
Alcoa, listed on the NYSE and active in Western Australia, was named one of two priority projects under the new deal. The U.S. government plans to take an equity stake in Alcoa’s gallium recovery initiative, sending its shares up nearly 10%.
The partnership comes amid China’s tightening export controls on rare earths, which are essential for EVs, semiconductors, and defense systems. The move accelerates efforts by allies to reduce reliance on Chinese supply chains.Albanese said both governments would contribute $1 billion each over the next six months for projects that are “immediately available.” However, a White House fact sheet later clarified total investment could exceed $3 billion, with up to $5 billion unlocked through Export-Import Bank financing commitments.