NioCorp’s Grant and US-Australia Agreement on Rare Earths

NioCorp’s CEO, Mark Smith, shared during a segment on Mornings with Maria that a $10 million grant from the Department of Defense is set to enhance rare earth initiatives in Nebraska. This comes as the U.S. aims to strengthen supply chains crucial for national security and economic stability.

Recently, Australian Prime Minister Anthony Albanese and President Trump formalized an agreement focused on rare earth elements and critical minerals. This collaboration seeks to ensure more stable global supplies, particularly as China exerts greater control over the market.

In a statement prior to their first summit, Trump indicated that this deal had been in the works for several months. Albanese described it as part of an $8.5 billion pipeline project that is “ready to go.”

As part of the agreement, both nations plan to invest $1 billion each in mining and processing endeavors over the next six months. They also agreed to establish minimum price floors for critical minerals, according to information from the prime minister’s office.

“In about a year, we’ll have an abundance of essential minerals and rare earths—it’s going to be quite something,” Trump remarked to the press during an event.

Focus on Rare Earths Grows as China Dominates

Under the new accord, there will be streamlined permits for mines and processing facilities, aiming to ramp up the output of these vital resources.

Additionally, the agreement highlights cooperation between the U.S. and Australia covering geological resource mapping, mineral recycling, and safeguarding critical mineral assets due to national security concerns.

Notably, reports from last month suggested that Australia might consider selling a share of its planned strategic reserves of critical minerals to allies, including the UK. This initiative aligns with the broader goal of reducing dependence on China for vital resources.

US Critical Mineral Initiative in Alaska

The United States has condemned China’s recent export regulations on rare earths, viewing them as a significant concern for global supply chains.

China stands as the world’s largest producer of critical materials vital for everything from smartphones to electric vehicle engines and military technology.

According to the U.S. Geological Survey, it is estimated that China’s mines could yield about 270,000 tonnes of rare earths in 2024, with reserves totaling 44 million tonnes. In contrast, the U.S. managed to produce only 45,000 tonnes last year with reserves at 1.9 million tonnes, while Australia produced 13,000 tonnes and has reserves of 5.7 million tonnes.