US eyes equity stakes in Australian critical minerals firms

📌 Key Takeaways

• The U.S. government has offered to buy direct equity stakes in Australian critical minerals firms, as part of a strategic push to diversify away from China. 
• Financial instruments being discussed include traditional debt, debt + equity models (“equity kicker”), and offtake prepayments for defense stockpiles. 

The US has offered to acquire equity in Australian critical minerals firms, according to ab Australian delegation of 15 critical minerals companies that visited Washington and New York last month to meet senior US administration officials.

The offer is part of a broader funding package aimed at decoupling supply chains from China. This is not aid — it’s strategic capital targeting real stakes in mining, refining, and supply.

U.S. government officials were “saying to companies, you come to us with a proposal and we’ll assess it and try and make it work through those various funding channels and programs that we have available to us,” Andrew Worland, CEO of International Graphite, which is building a mine and processing plant in Western Australia, told Reuters.

China’s recent export restrictions on rare earths and permanent magnets, imposed in retaliation to U.S. tariff, have disrupted global supply chains, threatening U.S. manufacturing and defense systems. 

Washington has responded by investing directly in critical mineral production and processing, most notably MP Materials for rare earths and Lithium Americas for lithium. That template is being extended overseas.

Australia is a logical target:

• It ranks among the top global holders of rare earths (5.7 million tonnes as reserve estimate) 
• Its critical minerals list includes lithium, cobalt, graphite, nickel, rare earths, and antimony. 
• The government has pledged A$1.2 billion toward a strategic minerals reserve, and is prepared to offer shares in that reserve to allies. 

Yet, Australia also enforces zero threshold foreign government review on tenements tied to national security. Any equity investment by a foreign government must automatically undergo scrutiny. 

How the U.S. structures the offer

During a trade mission of 15 Australian miners, U.S. officials (including via the National Security Council and International Trade Administration) suggested the financial tools offered include:

• Debt financing (low-interest or government-​backed)
• Debt + equity hybrids, where debt carries “equity kicker” upside
• Offtake prepayments, locking in supply for defense or strategic reserves 

Projects backed in this way aim to be production-ready by 2027, giving the U.S. a near-term window to reshape supply flows. 

A recent example: Nova Minerals’ U.S. arm, Alaska Range Resources, secured US$43.4 million to produce antimony trisulfide under a Department of War contract.