Australia fast-tracks critical minerals stockpile

Australia plans to buy and stockpile key minerals from domestic producers to strengthen defence and technology supply chains and reduce reliance on China.

The government will initially target rare-earth elements, antimony and gallium under a A$1.2-billion (US$802-million) program, Treasurer Jim Chalmers, Resources Minister Madeleine King and Trade Minister Don Farrell said Monday. 

Australia ranks among the world’s leading producers of critical minerals outside China, and the reserve aims to blunt Beijing’s market power.

Critical minerals have become a flashpoint in global trade and security as governments scramble to secure access to commodities essential for clean energy, advanced manufacturing and military equipment. 

China has used its dominance of the sector as leverage in past trade disputes with the U.S., accelerating efforts by rival nations to expand local production and build stockpiles.

G7 in action

Australia joined finance ministers from the Group of Seven in Washington on Monday to discuss supply chain security. Canberra has said it intends to make the reserve available to allies to help mitigate supply disruptions.

“Based on the wording of several of the USA’s trade deals signed in the last year as well as some statements from public officials, we believe that minimum pricing of some critical minerals could be a key topic of discussion,” BMO Metals analysts said Monday.

Australia’s Chalmers said the reserve would place the country “at the centre of efforts to build stable and reliable supply chains” for international partners.

“The world needs critical minerals,” he said. “Australia has plenty of them, and our critical minerals reserve will help us weather global economic uncertainty while boosting trade and investment.”

Implementation

The reserve will secure rights to minerals produced in Australia and on-sell those rights to meet demand, a structure the government says will support local miners while strengthening partner supply chains. 

The government plans legislation to expand the powers of its export finance agency and the industry department (EFA), which will oversee transactions, King told a briefing in Perth.

The reserve, originally targeted for launch by mid-2026, will be operational by year-end, King said.

Australia signed an agreement with the U.S. in October to counter China’s dominance in critical minerals, including an $8.5-billion project pipeline that leverages the proposed reserve to supply metals vulnerable to disruption.