Australia Considers Strategic Minerals Reserve in Potential Deal with U.S: Document leak

Darwin, October 12 — The Australian government is exploring the possibility of setting a minimum price for critical minerals and investing in new rare earth projects as part of a proposed agreement with the United States, according to a report by The Age.

Leaked documents from the office of Prime Minister Anthony Albanese suggest Canberra is planning to establish a A$1.2 billion (US$776 million) “critical minerals strategic reserve” in an effort to boost supply chain resilience and reduce dependence on China for key materials used in high-tech manufacturing and defense industries.

Government officials have reportedly started informal discussions with mining companies about contributing to the reserve, which would stockpile essential resources like lithium, cobalt, and rare earth elements.

Australia Rare-Earth.

The move comes ahead of Albanese’s planned summit with U.S. President Donald Trump in Washington on October 20 — the first official meeting between the two allies since Trump began his second term.

This week, Trump reignited trade tensions with Beijing after China imposed fresh restrictions on its rare earth exports. China currently dominates the global market for these materials, which are vital for everything from smartphones to electric vehicles and military hardware.

Last month, Reuters reported that Australia was open to offering allies — including the UK — stakes in its critical minerals reserve as Western nations scramble to secure alternative supply sources and safeguard key industries from geopolitical risks.