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Australian rare earths developer ASM eyes United States defence funding

Unusual earths designer Australian Strategic Materials (ASM) sees more funds appearing for rare earths projects from the United States Department of Defense even if there is a modification in administration, its CEO said on Tuesday.

Unusual earths have strong magnetic qualities which make them essential to applications from smart phones to laser assisted rockets. Australia is classified as a domestic provider to the United States for defense functions.

The magnet supply chain is really in a really great position, regardless of which (U.S.) federal government comes in, CEO Rowena Smith told Reuters.

Smith stated that Australian companies can potentially access U.S. Department of Defense funding under the newly established Office of Strategic Capital.

When I consulted with them, they were ... extremely positive that they had bipartisan support, she told Reuters on the sidelines of the International Mining and Resources Conference (IMARC). conference in Melbourne.

They're anticipating to come out of this calendar year with. momentum. They asked me to come back February and speak with them. once again. So yeah, we're feeling really optimistic of regardless of. what the outcome is, she stated.

CONTEXT

ASM has been constructing funds to finance the development of. its Dubbo uncommon earths task in Australia's New South Wales. state. It estimated in late 2021 that the task would cost. A$ 1.678 billion ($ 1.10 billion).

ASM has currently gotten a letter of interest for a debt. funding bundle of up to $400 million from Canada's authorities. export credit company and a guarantees for $600 million from the. U.S. Export-Import bank.

The Pentagon's Office of Strategic Capital has actually recently been. set up to disperse funds that are meant to seed investment in. the defense commercial base's supply chain.

WHAT'S NEXT

ASM is targeting a last investment choice for the first. half of 2026 although a study is underway to possibly quickly. track production.

(source: Reuters)