Overview
- The new framework commits at least US$1 billion from each government over the next six months, aiming to unlock an estimated US$8.5 billion project pipeline within a broader support package reported at roughly US$13 billion.
- Priority projects include Alcoa–Sojitz’s gallium plant at Wagerup in Western Australia, set to receive up to US$200 million from Canberra plus US support and Japanese backing for Sojitz, and Arafura Rare Earths’ Nolans project in the Northern Territory with up to US$100 million in Australian equity and up to US$300 million under US consideration.
- The US Export–Import Bank has issued Letters of Interest totaling more than US$2.2 billion to Australian firms including Arafura Rare Earths, Northern Minerals, Graphinex, Latrobe Magnesium, VHMRZ Resources and Sunrise Energy Metals.
- Investor reaction was swift with sharp ASX moves in the materials sector, including Alcoa up 7.49% and Lynas down 7.56% by the close, reflecting enthusiasm tempered by profit-taking and project uncertainty.
- Analysts highlight downstream processing as the choke point along with environmental and regulatory hurdles, evidenced by a record 59,000 EPA submissions in WA, while China’s public response has been restrained, noting that processing capacity remains its strategic advantage.