Australia and US boost support for critical minerals with $3.5 billion

Australia and the U.S. have committed more than A$5 billion ($3.5 billion) to back a range of critical mineral projects, nearly double the amount pledged when the two countries struck a co-operation agreement six months ago, Canberra said on Sunday.



The funding seeks to support Australian ventures to develop and refine metals vital to industries including defence, advanced manufacturing and the energy transition, a market that has long been dominated by China.



By doing so, they would support the re-industrialisation of America's high-tech manufacturing base, while helping to "counter China's export dominance and ensure Western supply-chain resilience," the two nations said when they reached a framework deal last October.



In that deal, Australia and the U.S. agreed to each provide at least $1 billion in investments towards an $8.5 billion pipeline of priority critical mineral projects across the two countries over the subsequent six months.



Australia has a vast supply of critical minerals such as rare earths, but China has mastered the technically difficult and environmentally fraught refining process.