Prime Minister Anthony Albanese Issues Statement
Strategic Stockpiling to Begin in Second Half of Next Year
Supplies to International Partners Planned
As the importance of critical minerals such as rare earth elements grows amid the ongoing US-China trade war, the Australian government is moving to establish a strategic reserve of these key minerals, similar to how oil is stockpiled.
According to Reuters and AFP on April 24 (local time), Australian Prime Minister Anthony Albanese announced in a statement that the government will make an initial investment of 1.2 billion Australian dollars (approximately 1.09 trillion won) to establish a strategic reserve system for critical minerals.
Prime Minister Albanese explained, "In increasingly uncertain times, Australia needs a new approach to maximize the strategic value of critical minerals." He also expressed expectations that this initiative "will enable us to effectively respond to trade and market disruptions."
To this end, the Australian government plans to purchase critical minerals or secure options to purchase them at specific prices, and to supply strategically stockpiled minerals to domestic industries and key international partners. In addition, a task force will be formed to discuss and finalize the scope and detailed design of the strategic reserve system, with plans to begin stockpiling in the second half of next year.
Earlier this month, the Chinese government responded to US President Donald Trump's announcement of reciprocal tariffs by introducing export controls on rare earth elements. The controls cover a total of seven items, including six types of heavy rare earths and rare earth magnets. Exporting these items outside China now requires a special export permit from the Chinese government. China currently accounts for about 60% of global rare earth production and holds a 90% share in processing and refining.
The impact of China's latest export restrictions is not limited to the United States. Although the measures are effectively aimed at the US, China has formally imposed rare earth export restrictions on all countries worldwide. The Financial Times pointed out, "China is designing a new export control regime that applies to all countries," noting that "this is intended to avoid the appearance of unilateral retaliation." The New York Post also analyzed that China is seeking to isolate the United States by pressuring multilateral supply chains, including those of US allies.
With China locking down its supplies, Australia has emerged as an alternative source. Australia is considered one of the countries with the largest reserves of critical minerals, including rare earth elements. According to the Australian government, the country has particularly high reserves of cobalt, gallium, germanium, lithium, magnesium, manganese, niobium, rare earth elements, scandium, silicon, tantalum, titanium, tungsten, vanadium, and zirconium.
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