Australia and the US have committed more than A$5 billion ($3.5bn) 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 yesterday.
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 US agreed to each provide at least $1bn in investments towards an $8.5bn 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 US 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.
The A$5bn in funding to Australian critical mineral projects will be carried out through the Export Finance Australia (EFA) and US Export-Import Bank (EXIM) agencies.
Among the largest investments is for a rare earths refinery project owned by Tronox Holdings where EFA and EXIM have issued letters of support and interest worth a combined A$849 million. Tronox, with operations in Western Australia and the US, would tap its existing mining and processing capabilities to produce mixed rare earth carbonate containing both light and heavy rare earth elements, King said.
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