US Government to Fund ASX Rare Earths Companies:
Loan Pledges: The US Export Import Bank (US EXIM) expressed interest in lending $1.28 billion to ASX-listed rare earths companies to counter China's dominance in the market.
Beneficiaries:
Australian Strategic Materials (ASM): $600 million for a rare earths mine near Dubbo, NSW.
Meteoric Resources: $250 million for a rare earths project in Brazil.
Loan Conditions:
Not guaranteed.
Contingent on US companies winning contracts in the projects.
Context:
This builds on US-Australia collaboration to create non-Chinese supply chains for critical minerals.
China controls 70-100% of the global supply in these sectors.
Additional US Support:[
$258 million grant to
Lynas for a Texas rare earths refinery.
Benefits for Developers:
Financial backing for pre-revenue companies (
Meteoric, Arafura, Liontown).
Credibility boost for
Meteoric and
ASM (whose projects differ from Lynas').
Specific Projects:
ASM (Dubbo):
Focused on terbium, dysprosium, etc.
Has a metalisation plant in South Korea for final stage processing.
Aims for vertical integration to avoid reliance on China/Vietnam.
Final investment decision expected in December 2024.
Meteoric ASX: MEI (Brazil):
Aims to produce rare earths from ionic clays.
Final investment decision expected in 2025.
Backed by Tolga Kumova (investor in critical minerals).