Interesting article... WR1 just needs a bit thrown our way.

US could splash more than $1B towards Aussie critical metals hopefuls

US President Joe Biden's push to build out the nation's ability to produce key critical and strategic minerals has delivered a quartet of Australia-based mine hopefuls a plethora of funding opportunities exceeding US$1 billion.

South32, Element 25, Anson Resources and American Rare Earths have all announced potential funding from US government agencies for their respective developments, and the funding tap isn't set to be turned off yet, with more grants expected – at least unless there is a change of government next year.

The largest potential grant announced this morning is a letter of interest for up to $456 million being offered by the US Export-Import Bank for ARR's Halleck Creek rare earth element project, while Anson is in line for up to $330 million for its advanced Paradox lithium-boron development.

Smaller grants have been offered by the US Department of Energy, with manganese hopefuls South32 and Element 25 each selected for up to $166 million in funding.

It follows a more modest US$31 million offer for Western Australia's Australian Vanadium on Friday.

The debt funding package being sought by ARR would be used for the construction of the company's world-class Halleck Creek project in Wyoming, where there is an estimated 7.48 million tonnes of contained total rare earth oxides, including key magnet metals such as neodymium and praseodymium.

The 15-year debt package would from EXIM's ‘Make More In America Initiative' and could support the initial development of the Cowboy State Mine, which ARR CEO Chris Gibbs suggested would be the first step in a multi-generational rare earths asset for the US.

March's scoping study flagged a potential US$456 million development for a 3Mtpa operation that could be scaled up in response to US domestic demand.

Lithium interest

Long-time lithium hopeful Anson has received a letter of intent for a A$500 million package from US EXIM, through the same scheme, for the construction of a direct lithium extraction plant at the Paradox Basin in Utah, where the company has been working on a brine project for a decade.

Anson executive chair Bruce Richardson said the planned plant would "produce one of the most environmentally friendly sources of lithium globally".

If finalised, the facility would make up a substantial portion of the overall funding requirements.

A 2022 definitive feasibility study suggested Anson would need $500 million to build a development producing about 10,000tpa lithium carbonate equivalent.

Earlier this year, South Korea's LG Energy Solution signed a cornerstone offtake agreement for 4000tpa LCE over 5-10 years.

Anson is targeting its first production in 2027.

Manganese push

In the manganese space, the US is keen to secure supplies of battery-grade metal, which is why the DoE has tapped South32 and E25.

South32 calls its Clark deposit within the Hermosa project in Arizona "the only advanced project in the United States with a clear pathway to produce battery-grade manganese from locally sourced ore for the North American electric vehicle battery market".

If the funding is finalised, the DoE will provide 30% of the cost of a manganese production facility up to US$166 million.

The US government's Department of Defence is already providing $20 million to support construction of a decline at Clark for a bulk sampling operation expected to produce samples of battery-grade manganese in early 2026.

Clark could share infrastructure with South32's $2.16 billion Taylor zinc-lead-silver project that is already in construction.

Downstream processing

E25's project is different in that it would import concentrate produced from the company's Butcherbird mine in Western Australia for further processing at a planned downstream facility in Louisiana that aims to produce around 65,000tpa of high-purity manganese sulphate monohydrate facility.

HPMSM is a critical raw material for the manufacture of lithium-ion batteries.

E25 already has $115 million in funding committed by offtake partners General Motors and Stellantis.

The $166 million from the DoE would fund up to half of the construction capital costs, with the company close to a final investment decision, managing director Justin Brown said.

E25 argues its proprietary flowsheet reduces energy consumption, virtually eliminates waste and delivers the lowest reported carbon intensity HPMSM globally.

E25 announced a non-binding agreement with Nissan to study a similar plant for Tokyo Bay targeting Japanese automakers earlier this month.

The US DoD is considering throwing more cash towards the lithium sector, too, with an application being considered from Jindalee Lithium for the McDermitt project in Oregon to support an accelerated feasibility study.

Energy and defence funding on offer

Last week, Jindalee revealed its sedimentary clay project had been knocked back for a Department of Energy grant for the engineering, procurement, construction and development of a processing facility at McDermitt, but the company stressed it remained eligible for funding support from a range of US government agencies, including the DoE.

A prefeasibility study for McDermitt is pending.

McDermitt is the largest lithium resource in the US, with 21.5Mt of lithium carbonate equivalent contained within 3Bt grading 1340 parts per million.

The US government has previously offered $2.3 billion to Lithium Americas for Thacker Pass, set to be the first sediment lithium mine in the nation, and $700 million for ASX-listed Ioneer's Rhyolite Ridge development.

Ioneer's sediment-hosted development has a capex estimate of $785 million from earlier this decade and is targeting 20,000tpa of lithium carbonate and 174,000tpa of boric acid from 2028.

Element 25 shares were up 150% today at A44c, capitalising it at $98 million, while ARR was up 16% at 29.5c, valuing the company at $146 million.

Anson and South32 were each up 1% in early trade. At 7.8c, Anson was capitalised at $101 million, while at $3.23, South32 was valued at $14.6 billion.