Anthony Albanese Set to Strike Lucrative Critical Minerals Deal with Donald Trump as Tensions with China Escalate
- Australia poised to become a “reliable partner” for the US in critical minerals, as China’s dominance sparks fears of economic coercion.
- Treasurer Jim Chalmers confirms that a critical minerals deal will be on the agenda when Albanese meets Trump next week.
- Australia’s abundant reserves of prized metals could be the key to unlocking a lucrative deal, as the US seeks to reduce its reliance on China.
- The move comes as China tightens its grip on rare earth exports, prompting the US to explore alternative suppliers.
Australia is set to capitalize on the escalating tensions between the US and China, as Treasurer Jim Chalmers reveals that a critical minerals deal will be on the agenda when Prime Minister Anthony Albanese meets Donald Trump next week.
Speaking from Washington, where he is meeting with American counterparts ahead of the prime minister’s official visit, Chalmers said that Australia is well-placed to service the US’s desperate need for critical minerals.
“We know that American companies desperately need critical minerals, and Australia is very well placed to service that need,” he said.
The treasurer’s comments come as China’s dominance over the critical minerals market sparks fears of economic coercion, with US Treasury Secretary Scott Bessent vowing to speak with allies, including Australia, on a “fulsome group response”.
“China cannot manage the supply chain or the manufacturing process for the rest of the world,” Bessent told US network CNBC.
Australia’s abundant reserves of prized metals, including rare earths, could be the key to unlocking a lucrative deal with the US, as the country seeks to reduce its reliance on China.
Chalmers said that Australia’s interests are “best served by more trade, not by more trade barriers”, and that the country is committed to being a “reliable supplier” of critical minerals to meet the needs of the US and other markets around the world.
The Australian government has been considering subsidizing the production and sale of critical minerals operations to give would-be mining investors the confidence they need to invest in the industry.
The move could involve offering tax credits and cash injections, as well as creating a strategic reserve of critical minerals to provide price security for Australian miners.
As tensions between the US and China continue to escalate, Australia is poised to reap the benefits of its abundant reserves of critical minerals, and establish itself as a key player in the global market.