ASX rare earths stocks are flying higher today.
The Aussie miners are jumping onto investors' radars on Tuesday following the overnight deal inked by United States President Donald Trump and Australian Prime Minister Anthony Albanese.
Albanese is currently in the US in his first face-to-face meeting with Trump.
The deal, signed in the White House, will give the US greater access to Australia's rare earths and other critical minerals amid growing trade tensions with China.
According to Albanese (quoted by Bloomberg), the deal represents a US$8.5 billion "pipeline that we have ready to go".
ASX rare earths stocks stand to benefit on a number of levels. Among them, Australia and the US agreed to each invest more than US$1 billion over the next six months for initial projects. The US government will also help fund the development of a 100 tonne per year advanced gallium refinery in Western Australia.
"In about a year from now, we'll have so much critical mineral and rare earths that you won't know what to do with them," Trump quipped in a veiled swipe at China.
What's happening with Chinese exports?
Earlier in October, China escalated its ongoing trade war with the US by announcing a range of restrictions on its rare earths exports.
By most estimates, China still controls at least 70% of the world's rare earths production. Rare earths represent a range of elements, which together are critical for most modern technologies, including mobile phones, rockets, aircraft, and EVs.
The US has been pushing to secure crucial rare earths sources outside of China's control for some time now. And in what looks to be good news for ASX rare earths shares, China's latest move has ramped up the urgency.
Australia has the world's fourth-largest rare earths deposits, trailing India, Brazil, and top dog China.
How are ASX rare earths stocks performing today?
In late morning trade today, shares in the S&P/ASX 200 Index (ASX: XJO) listed Lynas Rare Earths Ltd (ASX: LYC) are up 3.7%, trading for $21.26.
Arafura Rare Earths Ltd (ASX: ARU) shares are really taking off, up 21.9% to 59 cents each. That extra boost comes after the ASX rare earths stock announced this morning that it has received conditional approval for an investment of up to US$100 million from the Australian government to progress its Nolans rare earths project, located in the Northern Territory.
Brazilian Rare Earths Ltd (ASX: BRE) shares are also enjoying a day of outperformance, up 4.4% to $5.94.
Meanwhile, shares in Iluka Resources Ltd (ASX: ILU) – which produces zircon and high-grade titanium dioxide feedstocks (rutile and synthetic rutile) – are up 7.7% trading for $8.14 each.
And we'll leave off with Northern Minerals Ltd (ASX: NTU).
The ASX rare earths share is up 13% at the time of writing, trading for 6.1 cents.
Northern Minerals reported this morning that it has received non-binding and conditional letters of support from "key Australian and US government agencies" backing the financing and development of its Browns Range Heavy Rare Earths Project, located in Western Australia.
