** Positive newsflow from the US helps Australian rare earth miners be among the top performers on the broader ASX 200 index .AXJO, which is down 0.8% as of 0354 GMT

** Shares of Lynas Rare Earths LYC.AX, the world's largest rare earths producers outside China, rise as much as 3.3%

** Peers Iluka Resources ILU.AX, Meteoric Resources MEI.AX and MTM Critical Metals MTM.AX rise as much as 7.3%, 16.1% and 14.9%, respectively

** U.S. Department of Defense plans to continue investing in critical minerals projects to ensure a diverse American supply for weapons and many electronics

** Apple AAPL.O signed a $500 million deal with U.S.-based rare earths producer MP Materials MP.N for supply of rare earths magnets

** Developments come after Chinese measures to curb rare earths exports earlier this year

(Reporting by Nikita Maria Jino in Bengaluru)

((Nikita.Jino@thomsonreuters.com;))