Australian Strategy to Strengthen Rare Earth Position, A Report with 11 Recommendations

Highlights

• Australian think tank ASPI recommends collaborative strategies to secure and develop critical mineral supply chains with international allies.
• The Darwin Dialogue 2024 brings together Australia, US, Japan, and South Korea to discuss industrial policies and mineral sector development.
• Australia’s natural mineral resources position it as a potential leader in rare earth mineral supply chain reconfiguration.

The intensifying race for the successful reconfiguring and reordering of the rare earth mineral supply chains involves the West, Japan, Korea and others such as Australia, report John Coyne, the Director of National Security Programs and Henry Campbell, Strategic Engagement and Program Manager of Australian Strategic Policy Institute (opens in a new tab) (ASPI) National Security core.  Introducing 11 recommendations for government and industry to develop both the domestic and international critical minerals sector, they acknowledge “industrial policies are a double-edged sword.” On the one hand they can protect and promote industry while on the other hand, involve “picking winners and potentially further fracturing the international trade order.” Despite the costs, given what happens in China Australia’s industrial policies are crucial to navigating the unfolding dynamic geopolitical environment.  Partnering with international allies to coordinate and where possible harmonize policies becomes of paramount importance. 

This report (opens in a new tab) is based on what the authors describe as “an exclusive, invitation-only discussion at the Darwin Dialogue 2024, a 1.5 Track discussion between the Australian, United States, Japanese and Republic of Korean Governments.” 

Assessing the developments in Australia’s critical mineral policy since the inaugural Darwin Dialogue in April 2023, (opens in a new tab) including the driving Future Made in Australia policy; (opens in a new tab) the authors point to options to unlock new sources of domestic and international capital for the Australian critical minerals sector. Plus, considerations for how to ensure a rising environmental, social and governance standard worldwide.

Blessed with natural mineral endowments, Australia stands to potentially gain economically in national races for rare earth superiority. The think tank authors do pause however, to consider theimportance of collaboration. Declaring “the Australian Governmentmust work effectively with domestic state and territory governments, as well as close minilateral partners (opens in a new tab), to resolve the threats facing the critical minerals sector and develop secure and resilient supply chains for ourselves and the international community.”

Established in 2001, the ASPI is a defense and strategic policy think tank based in Canberra, Australian Capital Territory, founded by the Australian government, and funded by the Australian Department of Defense along with overseas governments, and defense and technology companies.