24 Nov US-AUS Critical Mineral Supply Chain Announced
The United States and Australia have signed a landmark bilateral framework, aimed at securing critical minerals and rare earths supply chains vital for defence, advanced manufacturing and clean-energy technologies.
This multi-billion initiative includes multiple components from joint public and private investments in the mining and processing of critical minerals, to pledges to streamline or deregulate permitting for mineral extraction/refining, as well as the commitment to adopt price floors or similar measures to shield domestic markets from unfair trade policies.
This framework unlocks an $8.5 billion pipeline of projects, ranging from extraction to processing, and creating the institutional settings to support downstream manufacturing.
As a starting point, the US and Australia will each invest at least $US1 billion ($1.5 billion) over the next six months to unlock an $US8.5 billion pipeline of critical mineral projects, both domestically and in each other’s jurisdictions.
Beyond simple investment, the framework creates the policy and pricing architecture needed to underwrite market confidence. It seeks to protect allied supply chains from non-market interventions and predatory pricing practices as it signifies coordination with partners such as the European Union, Japan and South Korea to establish common pricing and trading standards; clearly targeting China’s dominance in global rare earth processing.
This agreement is also likely to encourage greater investment in Australian mining and processing as it acknowledges the strategic importance of Australia’s role in the development of new technologies, defence capabilities and renewable energy infrastructure on a global stage, transforming Australia into a trusted partner in a high-value allied industrial ecosystem, rather than merely a supplier of raw materials.
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