CRITICAL MINERALSU.S. and Australia Deepen Critical-Minerals Engagement to Counter China
Engagement between Australia and the United States on critical minerals has matured from technical cooperation into a strategic partnership, aligning resource security with clean energy and defense priorities.
Engagement between Australia and the United States on critical minerals has matured from technical cooperation into a strategic partnership, aligning resource security with clean energy and defense priorities. Both governments recognize the urgency of diversifying supply chains as China entrenches its dominance across critical mineral extraction and processing. US policy has so far delivered strong domestic signals and backed its producers, but outcomes of its recent allied contributions remain to be seen.
China’s 2023 export ban exposed allied dependence on its processing power, prompting a strategic shift. While the US shielded firms including MP Materials with price guarantees, Australian producers such as Lynas Rare Earths remained vulnerable to market swings. October’s US–Australia Critical Minerals Framework signals continued momentum in bilateral cooperation. However, it is part of a broader sequence of initiatives that have achieved limited success in reshaping supply chains toward greater diversity and sustainability.
From Technical Cooperation to Strategic Compact
This partnership has rapidly evolved. A 2019 agreement between Geoscience Australia and the US Geological Survey provided a foundation for joint mapping and mineral assessments. By 2022, the Net-Zero Technology Acceleration Partnership formalized cooperation around zero-emissions technologies and diversified supply chains.
A breakthrough came in May 2023 with the Climate, Critical Minerals, and Clean Energy Transformation Compact. This established ministerial-level task forces and joint investment mechanisms, deepening the integration of supply chain planning. By October 2024, cooperation extended into batteries, long-duration storage, and solar supply chains through the Clean Energy Ministerial Dialogue. In July, Washington announced a Quad critical minerals initiative, signaling a more coordinated—but still US-led—effort to reduce Chinese dominance.
More significantly, both the US and Australia are members of the Minerals Security Partnership, a US-led multilateral forum launched in 2022. The US is a G7 member and Australia is an endorsing partner, and each has supported the G7’s five-point plan on critical-minerals security.
US Strategy in Transition
China’s December 2023 ban on exporting rare earth extraction and separation technologies was a wake-up call. It highlighted just how reliant the US and its partners remain on Chinese midstream processing. Even Western-backed projects, such as Brazil’s Serra Verde heavy rare earths mine, still depend on China to refine product. Raw supply diversification is meaningless without processing capacity.
