Australia is increasing its cooperation with Japan on critical minerals. This decision is a direct response to recent export controls on chips imposed by China. The Australian government is looking to leverage its strategic reserves of critical minerals to assist allied nations in reducing their dependence on Chinese supplies. This effort is intended to ensure a healthy alternative supply chain which is important, not just for these industries, but for all industries that depend upon these key resources.
Critical minerals like lithium, cobalt and nickel are key components for batteries and rare earth elements are vital to wind turbines. As the world moves toward a cleaner energy future, their value only increases. Australia and Japan have the longstanding and proven history as collaborators in this space. Both countries realize the need to diversify their mineral supplies to mitigate risks from geopolitical flash points.
China’s overwhelming control over the rare earth market has recently become a powerful geopolitical weapon. The country tightly controls critical resources, especially in its Inner Mongolia Autonomous Region. This control gives it the power to strategically influence global supply chains in radical ways. No wonder Beijing’s recent decision to start imposing export restrictions on rare earths has traders in a tizzy. In a direct rebuttal, Australia and Japan are fortifying their ranks.
The Australian government considers its strategic reserves to be a valuable asset that it can use to help allies push back against China’s vast regional hegemony. Australia has been working with Japan to ensure its own access to mineral supplies. This collaboration gives other countries that depend on Chinese exports an alternative to partnering with Beijing.
Japan’s dedication to this trilateral partnership illustrates the growing significance of critical minerals to Japan’s high-tech and energy sectors. The nation is working hard to diversify its sources. It recognizes the very real disruptions that would be caused by disruptions from China’s export policies. Just last week, Australian and Japanese officials met to explore ways to increase cooperation in mining. They are especially intent on building up domestic processing of critical minerals.
Besides strengthening domestic and ally supply chains, such a partnership could accelerate the development of new technologies for extracting and processing minerals. Both countries are aggressively investing in research and development initiatives focused on driving greater efficiency and sustainability within the mining sector.
At the same time, global demand for these critical minerals is skyrocketing. In response, Australia and Japan are deepening a strategic partnership that will determine the future of this critical industry. Together, they are collaborating to restore a more secure and resilient supply chain. This smart initiative will not only strengthen their own economies, but those of their allies.