First critical minerals to be offered to Australia’s key allies under $1.2B strategic reserve revealed
Antimony, gallium, and rare earths crucial for clean-energy and advanced military equipment will be the first critical minerals Australia’s key allies will be able to secure rights to under a new $1.2 billion strategic reserve.
The Albanese Government is shoring up Australia’s sales pitch on critical minerals, as Treasurer Jim Chalmers travels to Washington DC this week to meet with finance ministers from the G7 countries as well as India, Mexico and South Korea.
To give further certainty to critical mineral mining and processing projects, the reserve will secure rights to minerals produced in Australia and on-sell those rights to meet demand.
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By continuing you agree to our Terms and Privacy Policy.Resources Minister Madeleine King, pictured, said the reserve would give added assurance to investment in the sector, which would strengthen the reliability of supply chains for international partners.
It comes as Western nations seek to disrupt China’s dominance over the world’s supply of critical minerals, with Beijing responsible for processing 90 per cent of the world’s rare earths and magnets.
Critical minerals are crucial for smartphones, cars, household appliances and defence equipment. Antimony — which is among the first offerings — is used in household and commercial batteries but also night vision equipment and high-performance flame-retardant materials.
In October, Prime Minister Anthony Albanese and US President Donald Trump signed a multi-billion critical minerals and rare earths framework which would see both countries invest in projects.
Among meetings in Washington this week, Dr Chalmers will meet US Treasury Secretary Scott Bessent, who previously accused Beijing of becoming an unreliable partner after tightening controls on its critical minerals.
China announced a one-year pause on restrictions in November following a meeting between Mr Trump and Chinese leader Xi Jinping.
Dr Chalmers’ said the “ongoing geopolitical tensions” only highlighted that it was a “critical time to confer with counterparts.”
“This is all about making Australian workers and businesses big beneficiaries of the big shifts that are shaping the global economy,” he said ahead of his departure on Sunday.
“The world needs critical minerals, Australia has plenty of them, and that’s where we see a big opportunity.
“Everyone benefits from stronger and more diverse critical minerals supply chains, but especially Australia, and that’s what this work is all about.
“Whether it’s our resources or renewable energy, our skills or stability, Australia has exactly what the world needs, when the world needs it, and that’s well understood by our closest counterparts.”
He’s also slated to hold one-on-one meetings with his British, Canadian, and Japanese counterparts.
“From defence applications to clean manufacturing, critical minerals are at the heart of our economic and national security,” Ms King said.
“The Strategic Reserve will provide vital support for Australian critical minerals mining and processing projects, creating jobs and ensuring Australia is at the centre of efforts to build stable and reliable supply chains for our international partners.”
The Albanese government will introduce legislation when Parliament returns to give additional powers to Export Finance Australia to support the reserve.
