EL2780 Award – New Targets from Airborne MT

“Despite the limited direct impact of tariffs on BHP, the implication of slower economic growth and a fragmented trading environment could be more significant. China’s ability to shift toward a consumption-led economy and for trade flows to adapt to the new environment will be key to sustaining the global outlook,” he said.

Gilbert + Tobin states in its report that Australian lithium and rare earths companies are facing “significant” questions.

While the US Inflation Reduction Act had boosted demand prospects, the outlook is now less certain. At the same time, China is increasing its own output and may need to buy less from Australia.

The firm notes that companies may have to find new or additional trading partners for these reasons.

A potential bright spot for Australia is China’s critical minerals export restrictions to the US. Australia has a chance to prove its capacity as a minerals supplier, especially for countries seeking alternatives to Chinese supply.

The report cites Lynas Rare Earths (ASX:LYC,OTC Pink:LYSCF) and Iluka Resources (ASX:ILU,OTC Pink:ILKAF) as “well-positioned” companies, with the former recognised as the world’s largest non-Chinese producer of separated rare earth materials, and the latter currently developing Australia’s first fully integrated rare earths refinery.

“Despite these headwinds, Australia is benefiting from new strategic alliances,” Gilbert + Tobin wrote.

“The Australian Government’s partnerships with the EU and Japan on critical minerals are opening doors for investment and export growth. However, miners must carefully navigate regulatory challenges and shifting trade policies to secure long-term stability.”