BREAKING: Australia and the United States have just announced a historic agreement on critical minerals and rare earths, aimed at diminishing China’s dominance in the market. This landmark deal, valued at $8.5 billion, is set to significantly boost local projects in both nations.
The agreement involves each country committing to invest at least $1 billion to support a fast-tracked pipeline of critical projects over the next six months. These initiatives will be pivotal in securing supply chains for essential minerals used in technology and renewable energy.
Australia’s Minister for Resources, Madeleine King, confirmed that two priority projects will receive immediate attention: the Alcoa-Sojitz Gallium Recovery Project in Western Australia and the Arafura Nolans Project in the Northern Territory. The Alcoa project is set to receive up to $200 million in concessional equity finance from the Australian government, with the US also investing and obtaining offtake rights through its Department of War.
The Alcoa project aims to supply up to 10 percent of the total global gallium supply, a critical element for semiconductors, circuits, and solar cells. Meanwhile, the Arafura Nolans Project, backed by a $100 million equity investment from Australia, is expected to produce 5 percent of the world’s rare earths, vital for smartphones, military applications, and renewable energy technologies.
In a significant move to fortify this partnership, both governments will establish a US-Australia Critical Minerals Supply Security Response Group, led by King and US Secretary of Energy Charles Wright. This group will focus on identifying priority minerals, addressing supply vulnerabilities, and developing strategies to accelerate the delivery of processed minerals.
This agreement marks a crucial step in strengthening the economic ties between Australia and the US while ensuring a stable supply of critical minerals for the global market. As the world increasingly shifts towards renewable energy and advanced technologies, this deal will resonate across multiple sectors, impacting industries and economies on a global scale.
Stay tuned for further developments as this significant partnership unfolds and shapes the future of critical mineral supply chains. Share this news to keep others informed about this urgent and impactful agreement!
