China responds to U.S.-Australia critical minerals deal
FILE PHOTO: Workers move soil containing rare earths for export at a port in Lianyungang, China’s Jiangsu province, 31 October 2010.
Stringer | Reuters
China responded to the US-Australia critical minerals deal on Tuesday by saying resource-rich rare earth countries should take a “proactive role” in stabilizing critical mineral supply chains.
A Chinese Foreign Ministry spokesman was asked about the US-Australia critical minerals deal, which is being framed as an effort to counter Beijing’s dominance.
“The formation of global production and supply chains is the result of market and corporate choices,” Guo Jiakun said, according to NBC. he said.
“Resource-rich countries with critical minerals should play a proactive role in maintaining the security and stability of industrial and supply chains and ensure normal economic and trade cooperation.” he added.
Rare earths are a category of minerals that are critical for many products, from cars to semiconductors.
US President Donald Trump and Australian Prime Minister Anthony Albanese signed an agreement at the White House on Monday aimed at increasing the supply of rare earths and other critical minerals.
The framework agreement, described as an $8.5 billion agreement between the allies, came shortly after China imposed stricter export controls on rare earths.
China’s Ministry of Commerce earlier this month announced expanded restrictions on exports of rare earth elements and related technologies to prevent “misuse” of the minerals in the military and other sensitive sectors.
Western auto industry groups were among those sounding the alarm about new export controls, saying the measures could lead to supply chain chaos.
Australian Prime Minister Anthony Albanese (left) and U.S. President Donald Trump shake hands after signing an $8.5 billion rare earth minerals deal during a bilateral meeting in the White House Cabinet Room on October 20, 2025 in Washington, DC.
Anna Money Maker | Getty Images
Demand for rare earths and critical minerals expected to increase grow exponentially As the transition to clean energy accelerates in the coming years.
China is the undisputed leader of the critical mineral supply chain. accounting Approximately 60% of the world’s production of rare earth minerals and materials. US officials have previously warned this poses a strategic challenge amid a shift towards more sustainable energy sources.
rare earth stocks
George Cheveley, Ninety One’s natural resources portfolio manager, said the US and Australia deal would take a long time but was a “good deal” designed to increase supplies of critical minerals outside China.
“From an investment perspective, it’s not that clear. It’s a very small industry,” Cheveley told CNBC.Squawk Box Europe” on Tuesday.
“And clearly, when you’re dealing with an industry that is so politicized and where government money is essentially used as a subsidy, that tells you that it’s difficult to make this industry work economically,” he added.
Shares of some of Australia’s biggest critical metals and rare earth companies rose on Tuesday, while others fell after an early rally.
Lynas Rare EarthsWeiger, Australia’s largest rare earth producer by market value, fell 7.6% after reporting earnings at the start of the session. mineral sand miner Iluka Resources lithium producer down 0.1% Pilbara Minerals It increased by approximately 2.6%.
Latrobe Magnesium, Australia’s main producer of the critical metal magnesium, gained over 15%.
Rare earth stocks in the US were last seen slightly lower in the pre-market period. Critical Metals lost 3.8%, USA Rare Earth lost 2.4% and MP Materials lost 1.8%.
— CNBC’s Evelyn Cheng and Dylan Butts contributed to this report.
