The U.S. government has offered to buy equity in Australian critical minerals companies as part of a funding package to expand its supply and cut its reliance on China, executives recently returned from Washington said…The push is part of a plan to establish alternative mineral supply chains after China, the dominant producer of most critical minerals, responded to U.S. tariffs by restricting exports of rare earths and related permanent magnets, which impacted U.S. and European carmakers…Critical minerals include lithium, cobalt and rare earths, which are essential to technologies used in a variety of sectors, including clean energy, semiconductors and weapons…Funding pathways could include traditional debt, debt and equity models, which would be debt financing with an "equity kicker," and also offtakes, where the U.S. could potentially prepay for supply to add to a defence stockpile, Worland said, adding the focus was on getting projects ready for 2027…"The big takeaway message is the U.S. government is open for business and they will use whatever financial instruments are appropriate or suitable on a case-by-case basis," said CEO Andrew Tong of Cobalt Blue , who was also part of the delegation.

The Trump administration is looking to a little-known federal agency, the International Development Finance Corporation, to play a major role in overseeing and financing the plan, two of the people said…Established in Trump's first term with the BUILD Act of 2018, the agency was meant to provide low-cost financing for food, health and other projects in developing nations. But a proposal sent by the agency to Congress in June would significantly expand its authority and reach…The bill would more than quadruple its financing power to $250 billion from $60 billion as well as establish an equity fund tasked with shoring up key sectors, including infrastructure, energy, critical and rare earth minerals and supply chains – pretty much anything "in the economic and national security interests of the United States," according to a copy of the plan reviewed by Reuters…The agency is still waiting for Congress to approve its budget as well as the confirmation of Apollo Global Management co-founder Leon Black's son, Ben, to run it. A spokesman for Black said he couldn't comment on International Development Finance Corporation matters before his Senate confirmation…An International Development Finance Corporation official declined to comment on specific deals, but said its mandate is to "mobilize private sector investment for projects that advance U.S. foreign policy and economic interests, including projects that reduce reliance on critical minerals and materials controlled by China."

Prices surging: cobalt sulfate has jumped and Chinese cobalt metal has rallied as refiners stock up, signaling tighter markets ahead.