Australia’s Federal Resources Minister, Madeleine King, stated that an over-reliance on a single supplier for a particular good or technology puts the country in a vulnerable position which they seek to change. The Australian government is investing almost $22 million (US$14.8 million) into three rare earth projects that are led by renowned research institutes. This move comes after trade restrictions imposed by Beijing in late December 2023 that prohibited the export of technology to make rare earth magnets.
Rare earth minerals are crucial for the production of a wide range of products such as electric cars, batteries, renewable energy infrastructure, and military equipment. The Minister of Resources, Madeleine King, revealed on January 8 that the government would be providing funding to three projects focused on developing the technology required for producing a variety of rare earth elements.
China accounted for a significant portion of global rare earth production, prompting the Australian government to take action. The funding awarded to groups such as the Australian Nuclear Science and Technology Organisation, the Commonwealth Scientific and Industrial Research Organisation, and Geosciences will support research and development efforts to help local resource companies produce key materials and reduce dependence on China.
Beijing’s efforts to control the export of gallium, germanium, and other rare earth minerals have caused prices of these minerals to soar. New export rules require traders to report real-time export information, giving Beijing more control over the outflow of critical minerals. While some experts believe that China’s current dominance in rare earth minerals is temporary, others believe that its long-term viability is in question. Environmental concerns arising from the mining and refinement of these metals in China have led some to believe that developed nations will seek alternative sources and refine their own technologies in order to become less reliant on China.