Australia unveils $1.2 billion critical minerals stockpile to counter China

Monday 12 January 2026 - 11:50

By: Dakir Madiha

Australia unveils $1.2 billion critical minerals stockpile to counter China

Australia's Finance Minister Jim Chalmers departed for Washington DC on Sunday to join finance leaders from major global economies in talks on securing critical minerals supply chains. The Albanese government simultaneously disclosed fresh details about its $1.2 billion strategic reserve, designed to loosen China's dominance over vital materials used in defense gear and clean energy technologies.

The gathering, hosted by U.S. Treasury Secretary Scott Bessent, convenes G7 finance ministers alongside counterparts from India, Mexico, South Korea, and the European Union on Monday. It comes amid escalating geopolitical strains, highlighted by China's recent curbs on rare earth exports to Japan over Taiwan-related diplomatic disputes.

The Australian government specified antimony, gallium, and rare earths as the initial targets for the stockpile. Antimony powers batteries and night-vision equipment, gallium drives advanced semiconductors in radar systems, and rare earths enable high-performance magnets in fighter jets, MRI machines, and wind turbines. "The world needs critical minerals, Australia has them in abundance, and our critical minerals stockpile will help us navigate global economic uncertainty while boosting trade and investment," Chalmers stated before his trip.

This reserve will secure rights to Australian-produced minerals and resell them to meet international demand. It draws $1 billion from an expanded $5 billion Critical Minerals Facility, plus $185 million for selective stockpiling.

The Washington meetings build on a landmark bilateral deal inked in October 2025 by Prime Minister Anthony Albanese and U.S. President Donald Trump, establishing a $13 billion framework for critical minerals and rare earths. Under it, both nations pledged at least $1.5 billion each to advance mining and processing projects within six months. China currently controls refining of 47% to 87% of copper, lithium, cobalt, graphite, and rare earths, per the International Energy Agency. The G7 endorsed a critical minerals action plan at its June 2025 summit in Canada, though Bessent has voiced frustration over its sluggish rollout.

In Washington, Chalmers will hold one-on-one talks with Bessent, UK Chancellor Rachel Reeves, Japanese Finance Minister Satsuki Katayama, and Canadian Finance Minister François-Philippe Champagne. "With rising global uncertainty and persistent geopolitical tensions, it's vital to engage our counterparts at this pivotal moment," Chalmers noted. "Collaboration on critical minerals will fortify our economies and supply chains, making them more resilient." Resources Minister Madeleine King added that prioritizing antimony, gallium, and rare earths will provide project certainty, draw fresh investments, and shield the sector from future market shocks.