SYDNEY — Australian rare earths developer Victory Metals has secured a $190 million letter of interest (LOI) from the Export-Import Bank of the United States (EXIM), a move that underscores intensifying U.S. efforts to secure non-Chinese sources of critical minerals through mechanisms like EXIM Section 402.
The non-binding LOI offers potential debt financing for Victory’s North Stanmore project in Western Australia, with an indicative 15-year repayment window. While subject to due diligence, the deal positions Victory to become a key player in U.S.-aligned critical mineral supply chains.
“This is a major milestone and a powerful endorsement of our project’s technical and geopolitical strength,” said Victory Metals CEO Brendan Clark. “EXIM support, particularly under Section 402, elevates our profile as a secure, non-Chinese supplier.”
Section 402: Washington’s Financial Lever Against Beijing
EXIM Section 402, part of the bank’s 2019 reauthorization, was created to counter Chinese state-backed export financing. It directs EXIM to prioritize deals that promote U.S. leadership in strategic sectors—chief among them rare earths and advanced materials.
The initiative sits at the heart of US rare earths financing, aimed at creating resilient, ethically sourced mineral supply chains. It also serves as a critical economic tool in Washington’s geopolitical toolkit, providing allies like Australia access to long-term government-backed capital.
“Section 402 reflects the U.S. government’s strategic intent to anchor critical mineral production outside of China,” said Dr. Amelia Morgan, an energy security expert at Georgetown University. “Financing projects like North Stanmore aligns with both economic and national security goals.”
North Stanmore’s Role in a Broader Strategy
Victory’s North Stanmore project hosts significant concentrations of heavy rare earths, scandium, and hafnium, all vital to electric vehicles, aerospace, and defense technologies. A January 2025 resource update significantly expanded its estimated reserves, prompting increased interest from downstream buyers.
With EXIM’s preliminary backing, Victory is now in a stronger position to pursue offtake agreements with U.S. original equipment manufacturers (OEMs) and defense-aligned industries seeking compliant, transparent supply lines.
“This LOI from EXIM gives us a pathway to long-term, stable financing, and the credibility needed to accelerate partnerships with global manufacturers,” Clark said.
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Strategic Financing as Geopolitical Policy
Victory’s LOI is one of the first in Australia to explicitly benefit from EXIM Section 402, reinforcing a trend in US rare earths financing that blends private capital with strategic state support.
Washington has increasingly viewed export credit agencies as instruments of national policy, especially as China maintains dominance in global rare earths refining. The Biden administration’s push to re-shore and “friend-shore” critical materials has elevated interest in projects like North Stanmore, located in politically stable jurisdictions.
Victory’s financing discussions may also open access to other U.S. funding channels, including the China and Transformational Exports Program, further deepening alignment between U.S. industrial policy and Australian mineral development.
Next Steps
Though the LOI remains non-binding and conditional on environmental and legal compliance, Victory Metals is treating the commitment as a green light to advance negotiations and infrastructure planning. If completed, the deal would mark one of the largest U.S. financing arrangements for a non-Chinese rare earths project to date.
“This is not just about financing,” said Clark. “It’s about building the foundation for an ethical, diversified, and secure supply chain for the world’s most critical materials.”
