Emanuel Datt on the $4.6bn Australia-US critical minerals agreement and why Lynas, Iluka and rare earths carry a geopolitical premium.
~ 2 min. read
By: Datt Capital
21 October 2025: Following the announcement of a $4.6 billion Australia - US deal to boost critical minerals supply, Datt Capital CIO Emanuel Datt said, “The White House has clearly signalled a shift towards taking equity positions in strategic supply chains as part of its efforts to counter China’s dominance. Alongside measures such as price floors and strategic stockpiles, this move highlights a genuine commitment to strengthening supply chain resilience and advancing national security objectives.
“We see this as more than political posturing. This reflects a serious, long-term objective to diversify Western supply chains away from China. While this decoupling won’t occur overnight, the momentum towards a more secure and diversified rare earth supply chain is unmistakable.”
“Lynas (LYC.AX) remains the standout candidate for U.S. investment. This is the world’s premier rare earth producer outside China and is already a cornerstone of the Western supply chain. Iluka Resources (ILU.AX) is another logical choice, given its government-backed refinery project and diversified ore feedstock. Arafura Rare Earths (ARU.AX) also offers significant potential as a high-quality development-stage project in the Northern Territory.”
“Our funds maintain diversified exposure to rare earth and critical metals, focusing on established producers and high-quality developers. We particularly favour WA1 Resources, which has made significant progress towards commercialisation, notably its breakthrough in producing niobium oxide, a compound with critical defence applications.
“In the current market environment, we think of rare earth exposures as bearing upside from a lower cost of capital, offtake certainty and a geopolitical premium for well located assets.”
Download the full PDF: Datt Capital: Australia - US agreement for critical minerals a genuine push to counter China
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Datt Capital Pty Ltd
ABN 37 124 330 865
AFSL 542100
390 St Kilda Rd, Melbourne VIC 3004
© COPYRIGHT 2026. ALL RIGHTS RESERVED.
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