Australia Positions Itself as Key Player in US-china Rare Earths Competition
WASHINGTON – As Prime Minister Anthony Albanese prepares to meet with President Donald Trump at the White House, Australia is poised to leverage a $1.2 billion critical mineral reserve to capitalize on the escalating competition between the US and China over rare earth elements. The move comes as China currently dominates both the mining and processing of these vital materials,a position President Xi Jinping has strategically utilized as a bargaining tool.
The potential for Trump to endorse Australia’s efforts through the critical mineral reserve highlights a growing prospect for Australia to become a key supplier to the US, reducing reliance on china.
Within Australia’s Liberal Party, however, a clear strategy is still emerging.While Opposition Leader Sussan Ley and Shadow Treasurer Ted O’Brien have prioritized spending restraint, it remains unclear whether support for critical mineral development would be considered a spending cut.
Shadow Finance Minister james Paterson recently articulated a nuanced position, arguing against broad national security-driven domestic manufacturing. ”But in an era of strategic competition,” paterson stated,”our dependence on authoritarian powers for critical imports is a serious problem.” He advocated for “surgical” interventions, specifically citing the defense industry as a qualifying area for targeted support, while cautioning against widespread government assistance to industries seeking strategic importance designation.
The strategic importance of rare earths is recognized by both Albanese and Trump, as Australia seeks to define its role in this evolving geopolitical landscape.
David Speers is national political lead and host of Insiders, which airs on ABC TV at 9am on Sunday or on iview.
