Sydney – Rare earths developer Australian Strategic Materials (ASM) anticipates increased funding availability for rare earths projects from the U.S. Department of Defense, even in the event of a change in administration, according to its CEO.
Rare earth elements possess strong magnetic properties, making them essential for various applications, from smartphones to laser-guided missiles. Australia is recognized as a domestic supplier to the United States for defense purposes.
“The magnet supply chain is currently well-positioned, regardless of which U.S. government comes into power,” CEO Rowena Smith stated in an interview with Reuters.
Smith highlighted that Australian companies could potentially access funding from the newly established Office of Strategic Capital within the U.S. Department of Defense.
“When I met with them, they expressed confidence in having bipartisan support,” she noted on the sidelines of the International Mining and Resources Conference (IMARC) in Melbourne. “They expect to gain momentum by the end of this calendar year and have asked me to return in February for further discussions. We feel optimistic about the future, regardless of the political outcome.”
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ASM is actively raising funds to support the development of its Dubbo rare earths project in New South Wales, Australia, which was estimated to cost A$1.678 billion ($1.10 billion) in late 2021.
The company has already received a letter of interest for a debt funding package of up to $400 million from Canada’s official export credit agency, along with commitments for $600 million from the U.S. Export-Import Bank.
The Pentagon’s Office of Strategic Capital has recently been set up to allocate funds aimed at seeding investment in the defense industrial base’s supply chain.
ASM is targeting a final investment decision in the first half of 2026, although a study is underway to explore the possibility of expediting production.
