The US government is moving to secure critical minerals, including antimony, from Australia, offering to invest directly in local companies.
Executives who recently visited Washington said the initiative is part of a broader effort to reduce reliance on China. Announced on Thursday, the move follows Chinese restrictions on rare earths and permanent magnets after the US imposed tariffs. These minerals are essential for clean energy, semiconductors, weapons, and other technologies.
Additionally, Australian companies exploring partnerships with the US now have multiple funding options.
Another possibility is prepaying for mineral supply through offtake agreements, potentially adding materials to a US defence stockpile. The focus is on projects ready by 2027.
Further, the US has already invested in critical minerals projects domestically.
Reuters reported that the Department of Energy will also acquire a five per cent stake in Lithium Americas Corp (TSE: LAC) (NYSE: LAC) (FRA: WUC), and a separate five per cent stake in its Thacker Pass lithium mine joint venture with General Motors Co (NYSE: GM) (ETR: 8GM).
The investments come via no-cost warrants. Previously, the Trump administration also bought stakes in Intel and MP Materials (NYSE: MP), boosting industries deemed vital to national security.
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Investors view these projects as high risk
Meanwhile, Australia is exploring selling shares in its new strategic reserve of critical minerals to allies such as Britain. Reuters noted that the reserve could strengthen Australia’s negotiating position during Prime Minister Anthony Albanese’s upcoming meeting with President Trump on October 20. The discussions will include the Australia, UK, US (AUKUS) defence pact, which aims to provide Australia with nuclear-powered submarines to counter China in the Indo-Pacific.
Funding challenges have long slowed critical minerals development. Consequently, the markets for these materials are small, prices are volatile, and valuations can be difficult to determine. Consequently, investors often view such projects as high-risk. Government backing, however, has reduced some of this risk, generating renewed investor interest.
Andrew Tong, who serves as the CEO of Cobalt Blue (ASX: COB) (OTCMKTS: CBBHF), said that US officials are open to flexible arrangements. His company seeks funding for a cobalt mine and refinery in Western Australia. Tong said Cobalt Blue aims to integrate these assets into the US supply chain.
“The big takeaway is the US government is open for business,” Tong said, adding that financial instruments would be considered on a case-by-case basis.
Executives said the US approach could accelerate project timelines. In addition to funding, partnerships with the US may provide technical support and market access. Furthermore, the involvement of a government partner could reassure private investors, increasing confidence in long-term viability.
The initiative reflects broader geopolitical concerns. China dominates production of many critical minerals, giving it leverage over global industries. By investing abroad, the US hopes to create alternative supply chains and secure materials for defense, technology, and clean energy applications.
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Department of Defense trying to bolster domestic supply of antimony
The United States has taken multiple steps to reduce its dependence on China for critical minerals, including both regulatory reforms and direct investments.
One key initiative is the FAST-41 program, designed to streamline permitting for projects deemed vital to national security. Perpetua Resources Corp (TSE: PPTA) (NASDAQ: PPTA) Stibnite Gold Project in Idaho has received FAST-41 designation, allowing it to move faster through regulatory reviews.
The project also benefits from U.S. Department of Defense funding to help establish a domestic supply of antimony. Antimony is not technically classified as a critical mineral, but it is on the list of required sources for defense applications. Antimony is crucial for munitions and other advanced defense technologies.
That’s why in addition to permitting support, the Department of Defense has pursued contracts with domestic suppliers to secure long-term mineral supply.
These agreements, including multi-year procurement deals, help maintain stockpiles of materials that could otherwise be sourced only from foreign suppliers. Such steps are aimed at reducing vulnerability to international supply disruptions and ensuring that the U.S. maintains access to strategic minerals for defense and technology needs.
The focus on antimony highlights a broader strategy to diversify the domestic minerals base. China’s export restrictions on the mineral have underscored the importance of developing local sources. Companies producing antimony are now gaining attention from U.S. policymakers as potential partners in securing supply chains.
NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50), for example, is exploring antimony deposits at its Limousine Butte Project in Nevada. Early testing indicates strong recovery potential, positioning the company as a candidate for future government-backed initiatives.
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