US and Australian policymakers are actively working to head off future supply bottlenecks of rare earth minerals and other key inputs in the high-tech exports of tomorrow.

Rare earths represent fertile ground for bilateral cooperation between Washington and Canberra. Both governments share an aversion to overreliance on Beijing for supply, and Australia is stepping up as an alternative producer. The country accounts for around 2.8% of global rare earth mineral supply and more than half of the world’s planned new facilities.

China is currently the world leader in rare earths mining and processing by a large margin, a position that leaves US producers susceptible to disruptions. Around 78% of all rare earth imports into the United States come from China. Beijing has brandished rare earths as a diplomatic weapon in the past against Japan, and there have been rumblings of it doing so again in the trade war.

Rare earth minerals refer to a collection of mineral inputs that are critical to a variety of high-tech products, ranging from wind turbines to electric car batteries to fighter jets.

Background

US-Australia cooperation on rare earths and other key mineral inputs has been building since the advent of the trade war, and it has picked up further momentum in recent months.

In early September, Australia released a report outlining 15 rare earth and critical mineral projects to fill holes in the supply chain and alleviate overreliance on China. The report proposes some A$5.7 billion worth of new facilities, covering rare earth minerals, antimony, magnesium, and tungsten – all of which China currently controls the global supply of. The plan also calls for the construction of a new rare earths mine and processing plant in Western Australia.

Lynas Corp, the Australian miner building the new processing plant, also has plans for a new facility in Texas.