Australia to tout rare earths prowess ahead of Trump talks

Australian Treasurer Jim Chalmers will promote his nation’s ability to be a crucial part of Washington’s efforts to diversify the rare earths supply chain away from China, as part of talks with Kevin Hassett, the director of the National Economic Council.

“Australia is very well placed to service” the need for rare earths, Dr Chalmers told reporters in Washington overnight Thursday, hours before the talks.

“We will engage with our partners to make sure that we can be a very reliable supplier to meet the critical minerals needs of this country, here in the US, and other markets around the world.”

Australia has the world’s fourth-largest deposits of rare earths, as well as a long history of mining — boosting its case to become a viable alternative to Chinese supplies of the metals that are essential for sectors from semiconductors through military technology.

It is also the base of the only producer of so-called heavy rare earths outside of China, after Perth-based Lynas Rare Earths started refining them at its facility in Malaysia.

Media reports on Friday said that the Trump administration is considering taking part-ownership of Australian rare earths projects, citing industry sources it didn’t identify.

Equity investments could come from various US agencies, including the Pentagon and the Export-Import Bank of the United States, according to the report.

In recent months, the US has begun taking equity-like stakes in key players within the sector, including positions in Gina Rinehart-backed rare earths producer MP Materials and Lithium Americas. The moves were part of a broader US strategy to develop supply chains to compete with China.

More than a dozen Australian mining firms last month held meetings in Washington with officials from various agencies, and were told the administration was looking for ways to take equity-like stakes in companies, according to people familiar with the talks.

That led to dizzying stock-price gains for Australian companies with critical minerals projects — including Nova Minerals and Resolution Minerals, which said they will brief the Australian government before talks between Prime Minister Anthony Albanese and President Donald Trump next week.

Dr Chalmers said there was concern that the market for critical minerals isn’t as reliable and robust as it could be.

“No doubt it will be part of the discussions Prime Minister Albanese has with President Trump next week,” Dr Chalmers said. “This will be an important part of the discussions I have with Kevin Hassett tonight.”

Bloomberg