Highlights
- Victory Metals receives $190M in potential financing from EXIM Bank for the rare earths project in Western Australia.
- The project aims to provide an alternative to Chinese-controlled critical minerals like gallium and heavy rare earths.
- Early-stage development with promising potential but significant technical and financial risks remains.
In a significant, if early-stage, development for Western efforts to counter China’s critical mineral dominance, Victory Metals (opens in a new tab) announced it has secured a letter of interest (LOI) from the Export-Import Bank of the United States (EXIM) for up to $190 million USD in potential financing for its North Stanmore rare earths project in Western Australia. (opens in a new tab)
The non-binding LOI, framed under EXIM’s China and Transformational Exports Program, represents an important political endorsement. It signals growing U.S. willingness to financially back non-Chinese sources of gallium, scandium, and heavy rare earths — all of which are now subject to Chinese export controls. Under Section 402 of EXIM’s 2019 reauthorization, such projects are eligible for priority support to rebuild strategic supply chains critical to defense, technology, and energy sectors.
Project Status: A Promising Resource, But Still Early Days
North Stanmore remains at the pre-development stage. Victory Metals recently updated its mineral resource estimate (MRE) to include 4,788 tonnes of gallium oxide, alongside previously identified heavy rare earth elements (HREEs). However, the project has yet to complete definitive feasibility studies (DFS) or secure environmental approvals, meaning years of technical, regulatory, and financial de-risking are still ahead before production can realistically begin.
Initial test work has confirmed the recovery of gallium and other restricted elements into a mixed rare earth carbonate (MREC); however, critical questions regarding scalability, metallurgical performance, and processing costs remain unanswered.
Company Profile: A Young Challenger in a Crowded Field
Victory Metals, a relatively small Australian exploration and development firm, is attempting to position itself as a secure alternative to Chinese suppliers. CEO Brendan Clark (opens in a new tab) has emphasized the company’s ambition to deliver a “world-class heavy rare earth project” with gallium recovery providing a major bonus rather than a crutch. Nonetheless, Victory faces formidable challenges typical of small-cap developers: funding gaps, execution risks, and the steep costs of moving from resource to production.
Potential, but No Guarantees
The EXIM LOI undoubtedly enhances Victory’s credibility and could attract additional investor interest. Yet without a completed DFS, proven economics, and clear permitting pathways, Victory remains a high-risk, early-stage play — one among many vying for attention in the West’s urgent but messy push to diversify critical mineral supply chains.
Moreover, EXIM’s LOI is non-binding and contingent upon future conditions, meaning actual financing could slip away if Victory fails to meet strict milestones. The United States’ interest is real, but it is no blank check.
Conclusion
Victory Metals’ North Stanmore project offers tantalizing potential to supply heavy rare earths and gallium outside Chinese control. However, tangible production remains years away, and key technical and financial risks must still be overcome. The EXIM backing is a powerful political endorsement, but whether Victory can translate that into a real, operating mine remains an open — and urgent — question.
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