ASX-listed critical minerals miners rallied in afternoon trade following reports of a US initiative to establish a $US12 billion critical minerals stockpile. The plan, reportedly dubbed “Project Vault”, is anticipated to provide a boost for Australian miners, according to Betashares. The US initiative aims to reduce reliance on Chinese rare earths and mirrors Australia’s $1.2 billion commitment to a strategic critical minerals reserve announced earlier this year.
Betashares senior investment strategist Cameron Gleeson commented that critical minerals had become central to US industrial and security policy. This shift is driven by increasing demand from sectors including AI data centres, power grids, renewable energy generation, and battery storage. According to Betashares, producers of these minerals from allied countries, such as Australia, Canada, Peru, and Chile, are likely to benefit from strategic government support.
The anticipated support may include access to cheap financing, tax incentives, US market access, greater price certainty, and state-led equity injections. This confluence of factors has spurred investor interest in Australian critical minerals companies.
Among the companies experiencing gains, Lynas Rare Earths saw shares rise by 5.1 per cent, IGO was up 3.5 per cent, and South32 recorded a gain of 5.8 per cent. Lynas Rare Earths is an Australian rare earths mining company. IGO is a mining and exploration company focused on metals critical to clean energy.
