On October 20, 2025, the United States of America and the Commonwealth of Australia announced a groundbreaking partnership aimed at securing a reliable supply of critical minerals and rare earths. These materials are essential for the production of advanced technologies that support both nations' commercial and defense sectors. This strategic alliance underscores the importance of developing resilient and secure supply chains for these vital resources.
The primary goal of this collaboration between the U.S. and Australia is to enhance the supply of raw and processed critical minerals and rare earths. By leveraging economic policy tools and coordinated investments, the Participants aim to foster diversified, liquid, and equitable markets for these crucial materials.
Both countries plan to capitalize on their existing domestic mining and processing capabilities in critical minerals and rare earths, with additional capacity expected to come online in 2026. This initiative represents a significant step towards achieving resilience in the supply chains that are fundamental to both nations' economies.
The collaboration will focus on several key areas:
Securing Supply: The U.S. and Australia are intensifying efforts to ensure a stable supply of critical minerals and rare earths. This will involve utilizing existing policy tools, such as the U.S. industrial demand and stockpiling infrastructure and Australia’s Critical Mineral Strategic Reserve. Investment in Mining and Processing: Mobilizing both government and private sector support is crucial. This includes financial backing through guarantees, loans, and equity, as well as facilitating offtake arrangements and insurance. Financing Initiatives: The Participants aim to provide at least $1 billion in financing for projects in both countries. This funding is expected to generate end products for delivery to buyers in the U.S. and Australia. Ministerial Engagement: A Mining, Minerals, and Metals Investment Ministerial will be convened within 180 days to promote investment in mining. Streamlined Permitting: Measures will be undertaken to accelerate and streamline the permitting process for critical minerals mining, separation, and processing.To ensure a fair market environment, the Participants will work to safeguard their domestic critical minerals and rare earths markets from non-market policies and unfair trade practices. This includes developing standards-based systems that allow for free trade while incorporating price frameworks such as price floors.
In addition to mining, the U.S. and Australia are committed to investing in recycling technology for critical minerals. This effort will focus on managing mineral scrap effectively, thereby supporting supply chain diversification and sustainability.
The alliance will also involve geological mapping efforts to identify mineral resources in both countries and beyond, enhancing the understanding and management of supply chains. A U.S.-Australia Critical Minerals Supply Security Response Group will be established to address priority minerals and supply vulnerabilities.
The agreement encompasses a framework that allows for ongoing collaboration while delineating the roles and responsibilities of both Participants. This framework does not create legally binding obligations but sets the stage for a strategic partnership aimed at enhancing national security through resource management.
As the U.S. and Australia move forward with this significant partnership, both nations are poised to strengthen their positions in the global market for critical minerals and rare earths, ensuring a sustainable and secure supply for future generations.
