Australia aims to fill the supply gap after China tightened its rare-earth export rules. The US Rare Earths market now looks to Canberra for support.
Australia is emerging as a major supplier of rare-earth metals to the United States after China imposed new export restrictions on critical minerals. These materials are vital for defence production and advanced technologies like artificial intelligence and semiconductors.
China controls most of the world’s rare-earth supply and has now restricted exports of 12 out of 17 metals. This has raised global concern over the availability of these essential resources.
Australian Treasurer Jim Chalmers said his country is ready to provide a steady supply of critical minerals to the global market. He added that Australia will work with partners like the US to meet rising demand and strengthen the supply chain.
Talks between US and Australian officials have recently intensified. Both nations are expected to finalise cooperation plans during the upcoming meeting between President Donald Trump and Prime Minister Anthony Albanese.
Australia has created a $1.2bn fund to develop its mineral sector. The Australian company Lynas Rare Earths has also partnered with US-based Noveon Magnetics to supply magnets for American defence use.
The US has responded to China’s export restrictions by warning of new tariffs on Chinese goods. Experts say Australia’s strong resource base and stable political system could make it a key partner for the US in rare-earth supply.
