Amid global concerns over China's export curbs on rare earths, Australia is positioning itself as a reliable supplier of critical minerals to the US and allies.
Australian PM Anthony Albanese is set to meet Donald Trump on Monday to discuss the AUKUS defense pact and Australia's potential contributions to securing rare earth supplies.
Ambassador Kevin Rudd emphasized Australia's ability to supply up to 40 of the 50 critical minerals the US currently lacks, citing advanced mining capabilities.
Australian officials stress the importance of maintaining stable economic relations with China, its largest trading partner.
Australia Joins Global Race for Rare Earths; PM Albanese to Meet Trump to Discuss AUKUS, Critical Minerals
Treasurer Jim Chalmers emphasized this delicate balancing act on Friday, stating that Canberra wants to deepen trade ties with the US, but we must also maintain a stable economic relationship with China
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Australian Prime Minister Anthony Albanese is scheduled to meet with US President Donald Trump on Monday, as the two leaders are expected to discuss Australia's growing role in securing global supply chains for rare earth elements, as well as to review the AUKUS defense pact.
The meeting comes amid rising global concerns over China's tightening control on exports of rare earth minerals critical components in electric vehicles, semiconductors, and military hardware. With the US, European Union, and Asian nations scrambling to secure alternative sources, Australia is positioning itself as a key supplier.
“Australia equals the periodic table,” said Australia’s Ambassador to the US, Kevin Rudd, during a speech in Washington last week. “Having it is one thing, but knowing how to mine it, mining is a high-tech business, is another. And we have the world’s biggest and best miners.”
Rudd added that the United States currently lacks 50 designated critical minerals, and that Australia could meet demand for 30 to 40 of those “without much additional effort,” given the right investment condition.
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Japan’s Strategic Investments
This isn’t Australia’s first role in countering China's influence in the rare earths market. In 2011, Japan invested heavily in Australian mining companies after China restricted exports of rare earths during a territorial dispute. In 2023, Japan deepened that partnership by investing in heavy rare earth projects, particularly targeting elements China has since begun curbing.
Balancing Relations with China and the US
While Australia is strengthening its strategic and economic ties with the US, officials remain cautious about antagonizing China, its largest trading partner.
Treasurer Jim Chalmers emphasized this delicate balancing act on Friday, stating that Canberra wants to deepen trade ties with the US, but we must also maintain a stable economic relationship with China.
AUKUS Pact Under Review
Another key issue on the table is the review of the AUKUS pact, a trilateral defense agreement between Australia, the United Kingdom, and the United States, announced in 2021. Valued at nearly $240 billion, the agreement aims to provide Australia with nuclear-powered submarines and deeper defense cooperation.
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The pact is currently under review by the Trump administration, which is weighing its long-term strategic and financial commitments. Australian officials remain optimistic.
“Australia and the United States have stood shoulder-to-shoulder in every major conflict for over a century,” Albanese said on Sunday. “We are confident in the strength of this alliance.”
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