Australia-US rare earth supply push

Australia and the United States have agreed a framework to boost rare earth and critical mineral projects, enabling about US$8.5 billion of development and committing at least US$1 billion each over six months to speed mining, processing and supply‑chain build‑out.
Rare earth elements (17 metals) are costly to refine but essential for high‑performance magnets, electric vehicles, wind turbines, semiconductors and MRI systems. China holds roughly 44 million tonnes of known reserves versus Australia's 5.7 million and the US's 1.9 million, and remains dominant in production—about 270,000 tonnes in 2024 compared with 45,000 in the US and 13,000 in Australia.
Key projects announced include an Alcoa‑Sojitz gallium recovery plant in Western Australia (up to 10% of global gallium supply), Arafura's Nolans operation targeting around 5% of global rare earths by 2029, and Astron Corporation's Donald mine in Victoria, set to rank among the largest deposits outside China.
Analysts point to rising demand—IEA projects potential doubling by 2040—and a range of investment channels: listed miners, ETFs and venture capital. Significant risks remain: geopolitics, environmental constraints, China's market leverage and long lead times for mines, so price volatility and patience should be expected.