Via Metal Miner
While geopolitical tensions continue and rare earths supply chain vulnerabilities deepen, the United States is quietly redrawing the global map of critical mineral sourcing, and Australia seems to be emerging as a cornerstone. The latest development on this front is the U.S. Export-Import Bank (EXIM) issuing a letter of interest to fund up to US $200 million for VHM’s Goschen Rare Earths and Mineral Sands Project in Victoria.
This follows a similar move in September of this year, when EXIM backed US $67 million for Sunrise Energy Metals’ scandium project in New South Wales. Both projects are now part of Washington’s “Supply Chain Resiliency Initiative,” which sources say is designed to reduce dependence on China. The latter country currently dominates over 80% of global rare earth processing.
A New Strategic Rare Earths Asset
The Goschen Rare Earths and Mineral Sands Project, developed by VHM Limited in northwest Victoria, is rapidly emerging as a strategic asset in the global race to secure critical minerals.
With over 413,000 tons of total rare earth oxide and a proven ore reserve of 199 million tons, Goschen is designed to supply both light and heavy rare earths. Alongside valuable mineral sands like zircon and rutile, these are essential for electric vehicles, defense systems and clean energy technologies.
The project has already cleared major regulatory hurdles, including environmental approvals and a mining license, and is positioned within a Tier 1 jurisdiction with robust infrastructure and logistics. Analysts note that its scalable design and dual revenue streams make it one of the most commercially and geopolitically attractive rare earth ventures outside of China.
One of Several Globally Significant Moves
VHM CEO Andrew King called EXIM’s decision a globally significant move to resolve current supply chain vulnerabilities. And it is not the only such endeavor. In September, the EXIM bank had issued a similar LoI to finance Sunrise Energy Metals’ Syerston scandium project, marking another strategic move to secure critical mineral supply chains outside China.
The funding would cover nearly half of the project’s development capital, pending the completion of a feasibility study, which is expected by late October. That analysis will incorporate updated ore reserve estimates as well as an optimized mine plan.
Part of a Strategic Realignment
Many experts following the rare earths sector believe these types of investments aren’t just financial, but geopolitical. By securing long-term supply from Australia, the U.S. is executing a “friend-shoring” strategy, rerouting critical inputs through trusted allies.
For the U.S., the supply of critical rare earths has recently become a matter of even greater concern. In April 2025, Beijing imposed export controls on several rare earth elements, effectively weaponizing its mineral dominance amid rising global tensions. American industries, from aerospace to semiconductors, depend on rare earths for magnets, batteries and precision components.
Now it seems the U.S. has found a strategic way to bypass China by using financing as foreign policy. By offering 12–15 year repayment terms and streamlining approvals via the Single Point of Entry framework with Australia, the U.S. is accelerating project viability and locking in future supply as part of its Supply Chain Resiliency Initiative.
A final investment decision on Goschen and Syerston is expected within months. When that happens, these projects will become part of America’s overall industrial policy. There could also be more U.S.-backed Australian lithium, cobalt and other rare earth projects in the future.
Meanwhile, in Greenland
In addition to Australia, the U.S. has intensified its interest in Greenland’s rare earth reserves. For instance, the Tanbreez deposit is particularly valuable because it contains a high proportion of heavy rare earth elements, which are more scarce and critical for high-performance applications.
However, Greenland’s geopolitical significance adds another layer to this endeavor. As a semi-autonomous territory of Denmark located in the Arctic, it offers both resource potential and strategic positioning.
By Sohrab Darabshaw
More Top Reads From Oilprice.com:
- Supertanker Rates Soar as Buyers Scramble to Replace Russian Oil
- Iraq Negotiates Higher OPEC Oil Production Quota
- Oilfield Services Firm Petrofac Collapses
