Australia is considering introducing minimum prices for critical minerals and investing directly in new rare-earth projects as part of a potential resources pact with the United States, according to a report by The Age on Sunday. The plan, which could reshape the global minerals market, underscores Canberra’s growing resolve to reduce dependence on China for vital materials used in clean energy and defense technologies.
According to a leaked departmental brief cited by the newspaper, the federal government has begun discussions with major mining companies about contributing to a A$1.2 billion ($777 million) strategic minerals reserve. Under the proposal, authorities could set price floors, provide government-backed loans, issue offtake guarantees, and invest directly in domestic projects to strengthen local producers and stabilize the market.
The initiative comes as geopolitical tensions intensify over China’s dominance in processed rare earths. Beijing’s export restrictions have already rattled supply chains, prompting Western allies to accelerate efforts to diversify sourcing. In the United States, President Donald Trump has threatened sweeping tariffs in response to what he called “strategic manipulation” of mineral exports by China.
For Australia, the move represents both a defensive and strategic play — an attempt to secure its role as a reliable supplier to Western partners while insulating its miners from volatile global prices. If implemented, the policy could mark one of Canberra’s most interventionist steps in the resources sector in decades, signaling a new era in how critical minerals are priced, produced, and protected.
