
Mission Critical: US$3bn to counter China dominance

The battle for critical minerals entered a new phase on 20 October, when President Trump and Prime Minister Albanese signed a bilateral framework in Washington committing both nations to securing access to critical minerals and rare earths. This is a sizeable US$3 billion (A$4.61 billion) commitment, with both countries pledging at least $1 billion each within six months towards projects delivering end products to both markets. Critical minerals like lithium, cobalt, rare earths and graphite underpin defence technology, clean energy infrastructure and advanced manufacturing. China controls two-thirds of global cobalt refining and 60% of lithium processing, which means even when mining happens in Australia, the Democratic Republic of Congo, or Chile, the minerals flow to China for processing and refinement. That midstream dominance gives Beijing leverage over global supply chains, and during trade tensions or geopolitical disputes, that control becomes a tool that can halt production lines, delay military projects, and derail energy transitions. The agreed framework between the U.S. and Australia spans nine key areas to counter that dominance, from securing supply through strategic reserves to establishing asset sale



