Critical minerals reserve to counter China’s dominance
Critical minerals needed for the production of batteries, military equipment and advanced semiconductors will be prioritized for a new national stockpile, as Treasurer Jim Chalmers travels to the United States for meetings with some of the world’s most powerful economic policymakers.
The Albanian government will announce on Monday that antimony, gallium and rare earths will be the initial focus of the $1.2 billion critical mineral reserves it is developing to counter China’s dominance in this geostrategically important field.
Prime Minister Anthony Albanese and US President Donald Trump signed an agreement to develop a secure supply chain for critical minerals and rare earths when they met at the White House in October.
The government later said it had received interest from Europe, Japan, South Korea and Singapore with similar deals.
Antimony, one of the government’s top three stockpile priorities, is used to make household and commercial batteries, night vision equipment and flame retardant materials.
Gallium is a key component of advanced semiconductors used in radar systems and telecommunications, and rare earths are used to make high-performance magnets needed for fighter jets and MRI machines.
Critical minerals will be top of the agenda when Chalmers travels to Washington DC this week for meetings of G7 finance ministers. Representatives from India, Mexico and South Korea will also attend the talks.
Chalmers will meet with US Treasury Secretary Scott Bessent, British Prime Minister Rachel Reeves, Japanese Finance Minister Satsuki Katayama and Canadian Finance Minister François-Philippe Champagne in the US capital.
“Having a reliable reserve of these critical resources will strengthen supply chains and help stabilize critical mineral markets,” Chalmers said.
“The world needs critical minerals. Australia has plenty of them, and our critical mineral reserve will help us weather global economic uncertainty and boost trade and investment.”
Resources Minister Madeleine King said critical minerals were essential to the country’s economic and national security.
“The initial focus of the strategic reserve on antimony, gallium and rare earths will provide additional certainty to Australian projects, help attract further investment and help the industry cope with potential future market disruptions,” he said.
The government announced last April that: will create stocks announced the purchase of certain important critical minerals and will enter into purchase agreements to purchase agreed volumes of critical minerals from commercial projects.
China dominates the supply chain of critical minerals, refining 47 to 87 percent of copper, lithium, cobalt, graphite and rare earths, according to the International Energy Agency.
Australian Ambassador to the United States Kevin Rudd has repeatedly said that Australia can offer access to the entire “periodic table” thanks to abundant access to critical minerals.
In the trade war between the US and China, Beijing last year imposed strict export controls on some rare earths vital to defense and high-tech production to the US.
Under a ceasefire reached in November, Trump agreed to halve tariffs on Chinese imports, while Chinese President Xi Jinping imposed a one-year pause on Beijing’s export restrictions on rare earths.
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