Australian Strategic Materials (ASX:ASM) secured AU$5 million under the Australian Government's International Partnerships in Critical Minerals program, according to a Tuesday filing with the Australian Securities Exchange.

The company will match the grant funding to support research to lower capital and shorten the implementation of rare earth production at its Dubbo project in New South Wales, the filing said.

Shares rose more than 2% in afternoon trade.

Price (AUD): $0.62, Change: $+0.015, Percent Change: +2.48%