Wealthion Macro Bites 10/21/25

Pledging to protect their domestic markets from “unfair trade practices,” President Trump and Australian Prime Minister Albanese signed a landmark pact for joint investment in critical-mineral and rare-earth mines and processing projects in Australia.  The deal will begin with the U.S. and Australia each paying more than $1B over the next six months for initial projects, with further projects planned in both countries. 

Separately, the U.S. Export-Import Bank later announced seven letters of interest totaling more than $2.2B to advance development of deposits of rare earths, graphite, magnesium, zirconium, titanium and scandium.  The letters went to Arafura Rare Earths, Northern Minerals, Graphinex, Latrobe Magnesium, VHM, RZ Resources and Sunrise Energy Metals (individual stocks surged as much as 20% on news).

Alcoa announced the U.S. and Australian governments will join a Japanese joint venture (JAGA) through special purpose vehicles and joint development agreements to construct a gallium plant at Alcoa’s Wagerup alumina refinery in Western Australia.

In an ominous sign, following Treasury Secretary Bessent’s 10/15 criticism of Chinese trade negotiator Li Chenggang as “unhinged,” President Xi on Monday formalized Li’s new role as top trade negotiator and dropped Li from his post of permanent trade negotiator to the World Trade Organization (WTO).

Beginning Nov. 1, China will phase out state-owned China Platinum Co.’s exemption from a 13% VAT (in place since 2003) on domestically produced and imported platinum, effectively opening the Chinese market to competition and establishing a more liquid two-way market.

DXY dollar index +0.25%, spot gold -2.25% and spot silver -4.2%.