Locksley Resources and the U.S. Critical Minerals Supply Chain Revolution

The U.S. critical minerals supply chain is undergoing a seismic shift, driven by a confluence of geopolitical urgency, policy innovation, and industrial ambition. At the heart of this transformation is Locksley Resources Limited (ASX:LKY, OTCMKT:LKYRF), a junior explorer whose Mojave Project in California has positioned itself as a linchpin in the Biden administration's—and now Trump's—ambitious agenda to secure domestic access to rare earth elements (REEs) and antimony. With the Department of Energy (DOE) committing nearly $1 billion to critical minerals initiatives in August 2025, Locksley's alignment with these programs—and its proximity to the nation's only operating REE mine—makes it a compelling case study for investors seeking exposure to a sector where policy and profit intersect.

A Policy-Driven Tailwind

The Trump administration's Executive Order “Unleashing American Energy,” issued in March 2025, has accelerated permitting and development for critical mineral projects in high-priority jurisdictions like Mojave. This executive action, coupled with the DOE's $1 billion funding package, underscores a national imperative to reduce reliance on China, which dominates over 90% of global REE processing and 80% of antimony production. For Locksley, this creates a rare alignment of regulatory support and financial incentives.

The Mojave Project, located adjacent to MP Materials' Mountain Pass Mine, is not just geologically promising but strategically essential. Antimony, a metal critical to defense systems, semiconductors, and flame-retardant materials, has no domestic U.S. production. Locksley's high-grade antimony samples—up to 46% Sb and 1,022 g/t Ag—position it to fill this gap. Meanwhile, its REE results, including 12.1% TREO at the El Campo Prospect, align with the DOE's Rare Earth Elements Demonstration Facility initiative, which seeks to establish commercial-scale U.S. production.

Strategic Partnerships and Non-Dilutive Capital

Locksley's proactive engagement with federal agencies and research institutions further strengthens its case. The company has applied for membership in the Critical Materials Institute (CMI), a DOE-led consortium addressing supply chain vulnerabilities, and is in discussions with the EXIM Bank and Department of the Interior to secure financing and streamline permitting. These partnerships are critical in accessing non-dilutive capital, such as the Battery Materials Processing Grant Program ($500 million) and the CMM Accelerator ($50 million), which prioritize projects avoiding materials from foreign entities of concern (FEOCs).

The Mojave Project's proximity to Mountain Pass also opens opportunities for downstream processing partnerships. With the Defense Production Act (DPA) Title III offering incentives for domestic refining, Locksley could leverage its position to build an end-to-end supply chain, from extraction to off-take agreements with defense and EV sectors. This vertical integration potential is a key differentiator in a sector where logistics and processing often determine profitability.

Geopolitical and Economic Imperatives

The urgency of the U.S. critical minerals strategy cannot be overstated. Antimony's role in military applications—such as armor plating and electronic components—makes it a national security asset. Similarly, REEs are indispensable for advanced manufacturing, from wind turbines to electric vehicles. By targeting these metals, Locksley taps into a dual-use market where demand is driven by both commercial and defense sectors.

The company's Q3 2025 drilling plans, supported by federal funding, could unlock significant value. With the DOE's Mines & Metals Capacity Expansion initiative ($250 million) focusing on byproduct recovery from industrial waste, Locksley's exploration of antimony and REEs from unconventional feedstocks (e.g., mine tailings) aligns with the administration's focus on circular economy principles. This not only reduces environmental risks but also enhances project economics.

Investment Thesis

For investors, Locksley represents a high-conviction opportunity in a sector where policy tailwinds outweigh market volatility. The company's access to non-dilutive capital, strategic location, and alignment with national defense priorities create a robust moat. While junior explorers are inherently speculative, Locksley's engagement with federal programs and its proximity to an operational mine mitigate some of the sector's typical risks.

The key risks include permitting delays and commodity price fluctuations, but the Trump administration's emphasis on expediting critical mineral projects and the DOE's funding guarantees provide a buffer. Moreover, the global push for energy transition and defense modernization ensures long-term demand for antimony and REEs, insulating the sector from cyclical downturns.

Conclusion

Locksley Resources is not just a junior miner—it is a strategic player in the U.S. critical minerals renaissance. As the DOE's initiatives roll out and the administration doubles down on energy dominance, companies like Locksley will be at the forefront of reshaping global supply chains. For investors with a geopolitical lens, the Mojave Project offers a rare combination of policy support, resource potential, and national urgency. In a world where minerals are the new oil, Locksley's alignment with U.S. priorities makes it a stock worth watching.