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Australia Emerges as a Global Leader in Rare Earth Supply Chain Security

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Australia is emerging as a cornerstone in the global effort to diversify rare earth supply chains beyond China. Boasting some of the world's richest geological reserves and a well-earned reputation for stable and transparent operations, Australia is poised to contribute significantly to the supply chain for clean energy technologies, defence and advanced manufacturing. The recent landmark $8.5 billion critical minerals agreement with the United States further solidifies its role in this critical sector.

Top five rare earths producer with world-class projects to transform Australia’s critical minerals future

Largest Producer of Raw Materials

Australia has the world's fourth-largest rare earths reserves and is a top five producer. It is home to Lynas Rare Earths, the largest producer of separated rare earths outside of China, which operates the Mt Weld mine in Western Australia.

Developing Onshore Processing (Midstream)

Traditionally, Australia exported raw materials for processing overseas. A major shift in strategy, backed by substantial government funding, is now focused on building domestic refining and separation facilities.

  • The government has provided A$1.65 billion in non-recourse funding to Iluka Resources to build a rare earth separation facility at Eneabba, Western Australia, which is on track to become the second major non-China separation plant globally.

  •  The Arafura Nolans project in the Northern Territory also received government funding to build a mine and processing facility, aiming to produce 5% of the global rare earths supply.

Strategic International Partnerships

Australia is working closely with partners like the United States, Japan, South Korea and Malaysia to create a "friend-shored" supply chain, including initiatives such as:

  • Investment and Offtake Agreements: Partner nations are investing in Australian projects, and in return, secure long-term supply contracts.

  • Joint Facilities: Australian companies like Lynas have secured US Department of Defence funding to build processing facilities in the US, which will process materials from Australian mines, creating an integrated allied supply chain.

  • Technology Sharing: The USA-Australia Critical Minerals Framework Agreement promotes cooperation on technology and investment to accelerate the development of the sector.

Advancing Downstream Capabilities (Metals and Magnets)

Australian Strategic Materials (ASM) is a key player with demonstrated commercial capability to produce rare earth metals and alloys outside China at its Korean Metals Plant. ASM plans to leverage this expertise to build additional processing plants in the US, positioning Australia as a ‘mine-to-metals’ producer.

Government Support and De-risking

The Australian government has implemented a Critical Minerals Strategy, offering grants, loans and ‘major project status’ to strategically significant projects. This support helps projects overcome the challenges posed by China's market manipulation and provides price stability for miners, attracting private investment into a volatile market.

Australia’s Rare Earths: Powering Global Supply Chains

Australia’s rare earth sector is poised for a transformative decade. With strategic partnerships, the nation is not only securing global supply chains but also set to create countless high-skilled jobs. This growth will fuel innovation and cement Australia’s role as a trusted leader in critical minerals and driving long-term economic prosperity.

If you’re considering your next move in the rare earth projects get touch with our team for a friendly chat or search current jobs.

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