Australia's ‘critical' offering to the US
Critical minerals are just that – minerals, such as lithium, vital for manufacturing advanced technologies, from smartphones and cars to wind turbines and defence systems.
Currently, China dominates the space, but Australia has emerged as a challenger, ruffling some feathers in Beijing.
Because of their importance to modern tech, Western countries are increasingly viewing critical minerals as a matter of national security and scrambling to bolster sovereign stockpiles and production.
In an interview overnight, Australian Ambassador to the US Kevin Rudd said that Xi Jinping's 'ideology' on China's long-term economic development was 'to ensure that the world is dependent on China while China is not dependent on the world'.
'And that in a nutshell is what we see across the whole breadth of industrial policy, from semiconductors through to critical minerals and rare earths,' the former prime minister told the Center for Strategic and International Studies. Australian Ambassador to the US Kevin Rudd says Australia is key to breaking China's grip on critical minerals. Martin Ollman / NewsWire Credit: News Corp Australia
Boasting mineral reserves that 'more or less equals the periodic table' and an advanced mining sector, Mr Rudd said Australia was well-placed to help break the dependence on China.
'Geology has been kind to us,' he said, adding that Australia is 'an ancient continent'.
'We have the best mining companies in the world and the biggest mining companies in the world, some of whom have just been meeting with President Trump here in Washington, DC., as well as a whole depth of technical expertise represented in the research faculties of our major universities.
'So put together the geology … put together our processing capacity … and put together the depth and breadth of our mining expertise, I think we're well-placed to assist in diversifying the supply chains, creating resilient supply chains, and helping the United States, under President Trump's leadership, meet his requirements for a resilient America when it comes to critical minerals and rare earths.'
Australia's emergence as a competitor in the sector has not gone down well in Beijing.
Despite the Chinese President's warm words to Anthony Albanese in July about fair and open trade, his government's actions have made clear that extends to Australian lobsters rather than Australian minerals.
Since 2022, Australia's leading producer Lynas Rare Earths has been subjected to a relentless Chinese disinformation campaign targeting its operations both within Australia and abroad.
It has not deterred efforts to grow Australia's presence, driven in large part by the defence industry.
Mr Rudd said critical minerals should be viewed as 'defence goods', pointing to the tons used in the nuclear-powered submarines Australia is set to get under AUKUS.
He said the American-made Virginia-class 'contains within it something like 4.5 tons of critical minerals, rare earths, highly processed'.
'You go to an F-35, you're looking at a high proportion of the actual aircraft itself being derivative of advanced process to rare earth,' he continued.
'So whether we like it or not, the reality is the sharpest edges of what we do in the military hang off the availability of critical minerals in rare earths supply, as well as processed critical minerals in rare earths, as well as critical ... derivatives, such as magnets.
'So I think what President Trump is seeking to do … is trying to find how this now plays into a secure supply chain the United States.
'And as a US ally, we are ready and able to help, and we have the capacity to do so.'
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