Iluka Resources Limited (ILU.AU) saw its stock price soar 5.17% during Tuesday's intraday trading session. The significant upward movement followed the announcement of two major positive developments for the company's rare earths business.

The company confirmed access to a A$1.65 billion (approximately US$1.2 billion) non-recourse loan provided by the Australian government through Export Finance Australia. This funding is designated for the construction of the Eneabba rare earths refinery in Western Australia, which is currently over 50% complete and expected to be Australia's first fully integrated rare earths refinery.

Simultaneously, Iluka announced it has concluded a binding, multi-year offtake agreement to supply magnet rare earth oxides to an unnamed global automotive company. The four-year agreement starting in 2028 represents about 10% of Iluka's planned production and is expected to generate between US$155 million and US$172 million in revenue over the contract period.