Australia and US boost support for critical minerals with $3.5 billion

(Reuters)

SYDNEY, April 12 – Australia and the U.S. have committed more than A$5 billion ($3.5 billion) to back a range of critical mineral projects, nearly double the amount pledged when the two countries struck ​a co-operation agreement six months ago, Canberra said on Sunday.

The funding seeks to ‌support Australian ventures to develop and refine metals vital to industries including defence, advanced manufacturing and the energy transition, a market that has long been dominated by China.

By doing so, they would support the re-industrialisation of America’s ​high-tech manufacturing base, while helping to “counter China’s export dominance and ensure Western supply-chain resilience,” ​the two nations said when they reached a framework deal last October.

In that ⁠deal, Australia and the U.S. agreed to each provide at least $1 billion in investments towards ​an $8.5 billion pipeline of priority critical mineral projects across the two countries over the subsequent six months.

Australia ​has a vast supply of critical minerals such as rare earths, but China has mastered the technically difficult and environmentally fraught refining process.

“Australia and the U.S. are delivering on the commitments made in the White House, with priority ​projects in Australia that support production of rare earths and critical minerals,” Resources Minister Madeleine ​King said in a statement.

“Australia is taking a global lead to diversify crucial supply chains for critical minerals and ‌rare ⁠earths, which are vital to support economic and national security for Australia and our trading partners.”