Highlights

• U.S. and Australia discuss strategic collaboration on critical minerals such as rare earths, lithium, and nickel for defense and energy transition.
• Australia announces a national critical minerals reserve and government-led offtake agreements to ensure long-term supply assurance for allies.
• Geopolitical partnerships like Quad and AUKUS underscore the importance of securing diverse, reliable critical minerals supply chains.

In a landmark discussion hosted by the Critical Minerals Security Program at Center for Strategic and International Studies (CSIS), the Hon. Dr. Kevin Rudd (opens in a new tab), former Australian Prime Minister and current Ambassador to the United States, joined CSIS Director Gracelin Baskaran (opens in a new tab) today to chart the next frontier in U.S.–Australia critical minerals cooperation.

Titled “The Future of U.S.–Australia Critical Minerals Cooperation”, the August 20 event underscored the growing urgency of securing reliable, diversified supplies of critical materials like rare earths, lithium, and nickel—essential to defense, energy transition, and advanced manufacturing.

Australia’s announcement of a national critical minerals reserve and a new policy framework centered on government-led offtake agreements signals a bold strategic pivot. These moves are designed to ensure long-term supply assurance for allies like the U.S., while countering overdependence on China-controlled markets. Dr. Rudd emphasized that Australia’s role is “not just as a raw material exporter, but as a trusted strategic partner across the value chain.”

Gracelin Baskaran framed the conversation within broader geopolitical structures—Quad, AUKUS, and the Inflation Reduction Act—highlighting the importance of U.S.-Australian alignment as supply chain choke points shift from mines to processing and magnet production.

Investor Insight

Retail and institutional investors should monitor how U.S. agencies respond to Australia's reserve and offtake mechanisms. Will Washington reciprocate with Defense Production Act contracts or tax incentives? Will Australia’s downstream ambitions be met with U.S. capital and tech transfer? Key questions remain unanswered.

View the full event details at CSIS:

https://www.csis.org/events/future-us-australia-critical-minerals-cooperation (opens in a new tab)