Fri, 25 Apr 2025

Fri, 25 Apr 2025 China has halted rare earth exports, can Australia step up?

Australia has proposed to create a strategic reserve of critical minerals.

* Australia's Prime Minister Anthony Albanese has pledged to invest A$1.2bn (£580m) in a strategic reserve for critical minerals if he wins the upcoming election.
* The announcement comes after China imposed export restrictions on seven rare earth elements, essential for advanced technologies such as electric vehicles and fighter jets.
* Albania said Australia would prioritize minerals that are key to its security and that of its partners, including rare earths.
* China's controls apply to all countries but were seen as retaliation to US President Donald Trump's tariffs.
* Rare earths are a group of 17 elements critical for advanced technologies, with 90% of refining taking place in China.
* Australia has been investing in refining rare earths as part of its Future Made in Australia plan, but still depends on China for refining until at least 2026.
* Analysts say that even if Australia stockpiles more critical minerals, the refining process will still be controlled by China.
* The US and EU have "dropped the ball" on recognizing the importance of rare earths over recent decades, allowing China to develop a monopoly over refinement.
* Elon Musk said that China's halting exports of rare earths used in advanced magnets is affecting Tesla's ability to develop humanoid robots.
* Albanese's proposal says that minerals in the reserve will be available to both domestic industry and international partners, but analysts say it won't solve the problem of China's control over refining.
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