Australia fast-tracks critical minerals stockpile

[Ben Graham]

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 ($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. 

Australia’s minerals stockpile to tackle ‘distorted’ rare earths market

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

G7 in action

Australia will join finance ministers from the Group of Seven in Washington on Monday to discuss supply chain security, US Treasury Secretary Scott Bessent said over the weekend. Canberra has said it intends to make the reserve available to allies to help mitigate supply disruptions.

“The world needs critical minerals. Australia has plenty of them, and our critical minerals reserve will help us weather global economic uncertainty while boosting trade and investment,” Chalmers said. He added that the reserve would place Australia “at the centre of efforts to build stable and reliable supply chains” for international partners.

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 big winners from the Australia-US critical minerals deal

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

Australia signed an agreement with the US 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.