A landmark Australia–US critical minerals deal is set to unlock major investment in mining and processing, strengthening supply chain security and positioning Western Australia at the centre of global clean energy and defence-related production.
Mobilising capital and confidence
Under the framework, both governments will mobilise public and private capital through “guarantees, loans or equity; finalization of offtake arrangements; insurance; or regulatory facilitation”.
Within six months, each nation will provide at least USD$1 billion in financing for a US$8.5b pipeline of critical minerals and rare earths projects.
A Mining, Minerals and Metals Investment Ministerial will also be convened within 180 days to further promote cross-border investment.
“Australia is home to much of the periodic table of critical minerals and rare earth metals that are vital for defence and other advanced technologies,” said Prime Minister Albanese.
“Cooperation on critical minerals and rare earth supply chains is testament to the trusted partnership between Australia and the United States.”
WA set to attract global investors
With most of Australia’s lithium, nickel and rare earth deposits located in WA, the State will be the beneficiary of greater investment mobilisation, streamlined approvals and project collaboration.
The agreement also commits to accelerating and deregulating permitting processes and establishing a Critical Minerals Supply Security Response Group – jointly led by the US Secretary of Energy and Australia’s Resources Minister – to identify supply vulnerabilities and fast-track delivery of processed minerals.
“The guaranteed investment underpinning the framework will drive supply chain diversity and provide the confidence needed for proponents to pursue opportunities here,” said WA Manufacturing Minister Amber-Jade Sanderson.
“With a rich endowment of the critical minerals central to the framework, Western Australia is ideally placed to benefit from downstream processing and the further use of the minerals in advanced manufacturing.”
A foundation for sustainable growth
The framework signals a coordinated effort to build sovereign capability in both nations by supporting mining, processing, recycling and advanced manufacturing.
It also highlights the importance of protecting domestic markets from “non-market policies and unfair trade practices”, including the potential introduction of pricing standards and mechanisms such as price floors.
For WA, the deal could accelerate new investment into refining, battery materials and magnet production, cementing the State’s role as a global leader in critical minerals.
“Critical minerals and rare earths are more than a resource. They are the foundation of future industries and Western Australia stands ready to deliver,” said WA Mines and Petroleum Minister David Michael.
