In a significant move to bolster global supply chains and reduce dependence on China, President Donald Trump and Australian Prime Minister Anthony Albanese signed a landmark Critical Minerals Framework Agreement on October 20, 2025. This pact aims to enhance cooperation between the two nations in the mining, processing, and recycling of critical minerals and rare earth elements, which are essential for technologies ranging from electric vehicles and renewable energy systems to defense applications.
The agreement comes at a time when geopolitical tensions and supply chain vulnerabilities have heightened the urgency for Western allies to secure alternative sources of these vital resources.
Details of the Announcement
The framework agreement outlines several key initiatives designed to accelerate joint investments and projects. According to official statements, the U.S. and Australia plan to invest more than $3 billion together in critical mineral projects over the next six months, with a broader project pipeline potentially reaching up to $8.5 billion.
This includes cooperation on geological resource mapping, minerals recycling, and measures to curb the illicit trade of critical minerals.
Specific commitments involve the U.S. Export-Import Bank (EXIM) issuing Letters of Interest (LOIs) for financing totaling over $2.2 billion to support Australian critical minerals projects aligned with U.S. interests.
Australia, in turn, is providing up to $200 million in concessional equity financing for select projects, including offtake rights for the Australian government.
One highlighted initiative is the advancement of a gallium plant by Alcoa in Western Australia, which could supply up to 10% of the global gallium market, a mineral crucial for semiconductors and electronics.
The deal emphasizes breaking China’s dominance in the sector, where it currently controls around 80-90% of rare earth processing.
By fostering integrated supply chains, the agreement seeks to ensure stable supplies for clean energy transitions and national security needs. President Trump described the pact as “unprecedented” in speed and scale, while Prime Minister Albanese highlighted its role in enabling both nations to “make more things together.”
This announcement has already sparked market reactions, with shares of Australian resources companies experiencing sharp gains on the ASX following the news.
For the energy sector, this could mean accelerated development of battery materials like lithium, nickel, and cobalt, as well as rare earths for wind turbines and EV motors, potentially lowering costs and enhancing energy independence.
Potential Companies for Investment
The agreement opens doors for investors eyeing exposure to critical minerals, particularly through publicly traded companies positioned to benefit from government financing, offtake agreements, and expanded U.S.-Australia collaboration. Below, we highlight several standout firms—primarily Australian ASX-listed entities with direct ties to the deal, alongside key U.S. players. We’ve included summaries of their most recent earnings reports (fiscal year or quarter ending in 2025, where available) to provide context on their financial health. Note that many of these are development-stage companies with losses as they ramp up projects, but the deal could catalyze growth.
Arafura Rare Earths (ASX: ARU)Arafura is advancing its Nolans Project in Australia’s Northern Territory, focusing on light rare earths like neodymium-praseodymium (NdPr) for magnets in EVs and wind turbines. It has secured a position in the $2.2 billion EXIM financing framework and received $200 million from Australia’s Critical Minerals Reserve, positioning it for rapid scaling.
Latest Earnings Summary (FY 2024, ended June 30, 2024; FY 2025 not yet fully reported): The company reported a net loss of AU$67.4 million, widening slightly from AU$64.23 million in FY 2023, reflecting ongoing development costs with no significant revenue yet. Return on assets was -7.82%, typical for a pre-production miner.
Northern Minerals (ASX: NTU)Specializing in heavy rare earths like dysprosium and terbium at its Browns Range Project, Northern is poised to supply high-temperature magnets for defense and renewables. It received an EXIM LOI under the deal, with projected annual production of 17,500 tonnes of concentrate.
Latest Earnings Summary (FY 2025, ended June 30, 2025): Revenue fell to AU$2.58 million from AU$5.61 million in FY 2024, with gross profit at AU$0 (down from AU$5.61 million). Net income details indicate ongoing losses amid project advancement, but specifics on the bottom line were not detailed in summaries; EPS was -AU$0.0000.
Latrobe Magnesium (ASX: LMG)Latrobe is developing an innovative process to produce magnesium from fly ash waste, targeting automotive and aerospace applications. It secured an EXIM LOI, benefiting from the deal’s focus on diversifying magnesium supplies away from China.
Latest Earnings Summary (FY 2025, ended June 30, 2025): Revenue was not specified in detail, but gross profit stood at AU$2.73 million. EBITDA was -AU$2.49 million, and net income was -AU$2.66 million, reflecting investment in its demonstration plant with quarterly earnings growth year-over-year.
Lynas Rare Earths (ASX: LYC)As the world’s leading non-Chinese rare earth producer, Lynas operates mines in Australia and processing in Malaysia. While not directly named in the initial LOIs, analysts view it as a prime beneficiary due to its established supply chain and potential for U.S. investment under the framework.
Latest Earnings Summary (FY 2025, ended June 30, 2025): Revenue rose 20% to AU$556.5 million from FY 2024, driven by higher sales volumes. However, net income dropped 91% to AU$7.99 million, with profit margin at 1.4% (down from 18%), due to increased operating costs and market price pressures.
Alcoa (NYSE: AA)This U.S.-based aluminum giant is advancing a gallium project in Western Australia under the deal, with Australian government equity investment of up to $200 million. Gallium’s role in semiconductors makes this a strategic fit for the agreement’s goals.
Latest Earnings Summary (Q2 2025, ended June 30, 2025): Revenue decreased 10% sequentially to $3 billion. Net income was $164 million, with adjusted EPS of $0.39, beating estimates of $0.29. The company highlighted improved alumina production amid market challenges.
MP Materials (NYSE: MP)America’s leading rare earth producer at its Mountain Pass mine, MP could see indirect benefits from the deal’s emphasis on Western alliances, including potential supply chain integrations with Australian firms. It recently secured U.S. Defense Department contracts for rare earth supplies.
Latest Earnings Summary (Q2 2025, ended June 30, 2025): Materials Segment revenue grew 20% year-over-year to $37.5 million. Overall EPS was -$0.13, better than the expected -$0.16, supported by higher separation volumes despite market headwinds.
These companies represent a mix of established producers and emerging developers, with the deal potentially providing funding, offtake security, and reduced geopolitical risks. Investors should consider the volatility in commodity prices and regulatory hurdles, but the U.S.-Australia partnership signals strong long-term tailwinds for the sector. As always, conduct thorough due diligence before investing. We will be doing earnings reports and evaluating their performance in an Energy News Beat finacial tracker comming out.
Got Questions on investing in oil and gas? Or do you have a Tax Burden in 2025?
Crude Oil, LNG, Jet Fuel price quote
ENB Top News
ENB
Energy Dashboard
ENB Podcast
ENB Substack
Be the first to comment