Australia is taking part in a ministerial meeting aimed at exploring a strategic critical minerals alliance alongside the US, Europe, the UK, Japan and New Zealand.
According to media reports, the talks were convened by US Secretary of State Marco Rubio and are scheduled for February 4. The gathering marks the second such summit in less than a month and is expected to bring together ministers from around 20 countries, including G7 members the US, UK, Japan, France, Germany, Italy and Canada.
Discussions are set to focus on strengthening supply chain resilience, supporting clean energy transitions and deepening cooperation on strategic critical minerals. Early agenda items reportedly include potential US-backed price support mechanisms for critical minerals and rare earth elements.
However, reports indicate that the Trump administration has since moved away from pursuing a minimum price guarantee framework.
“The shift, which comes as a US Senate committee reviews a price floor extended to MP Materials (NYSE:MP) last year, marks a reversal from commitments made to industry and could set Washington apart from G7 partners discussing some form of joint price support or related measures to bolster production of critical minerals used in electric vehicles, semiconductors, defense systems and consumer electronics,” Reuters wrote in an exclusive.
Shares in Australia reportedly went down following the shift in plans, as Australia has been working towards becoming a key player in reducing critical minerals reliance on China.
Resources Minister Madeleine King was quoted by The Guardian as saying that the US decision to deflect from setting minimum pricing plans “won’t stop Australia” from pursuing its critical minerals reserve program.
In January, Australia announced that it intends to make its Critical Minerals Strategic Reserve (CMSR) operational by the end of 2026.
King detailed in a joint press release with Treasurer Jim Chalmers and Minister for Trade and Tourism Don Farrell that antimony, gallium and rare earths will be the first minerals of focus for the CMSR.
On Tuesday (February 3), the US was reported to be building a domestic stockpile of critical minerals, marking the Trump administration’s latest effort to reduce the country’s reliance on China for key materials and components used in cellphones, military equipment and renewable energy technologies.
This move also ties to the US and Australia deal signed last October, which outlined that both countries will each make more than US$1 billion in investments over the next six months for initial projects.
“Within a year, we’ll have critical minerals and rare earths that you won’t know what to do with them,” Trump said at the time.
More bilateral agreements on the supply chain are expected to be signed during the meeting.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.