Australia Offers Rare Earth Partnership to U.S. as China Tightens Export Controls

Albanese’s visit comes as Western economies scramble to diversify their supply of rare earths, which are essential for electric vehicles, wind turbines, and advanced weapon systems. Treasury Secretary Scott Bessent said last week that the U.S. is working with allies including Australia, Canada, and India to counter China’s dominance in the sector.

Australia’s ambassador to Washington, Kevin Rudd, highlighted his country’s unmatched resource potential, saying, “Australia equals the periodic table.” Rudd noted that with sufficient investment, Australia could meet 30 to 40 of the 50 critical minerals currently in short supply in the U.S., particularly processed rare earths.

Investors have already begun to respond to the growing momentum. Shares of Lynas Rare Earths Ltd. - Australia’s largest rare earth producer - have surged more than 150% over the past year, while Arafura Rare Earths Ltd. jumped as much as 21% ahead of the Albanese-Trump meeting.

Washington has also explored taking direct equity stakes in Australian mining companies, according to people familiar with the talks. Such a move would echo Japan’s investments in Lynas following China’s 2011 export ban, which helped Tokyo secure a stable supply of rare earth elements.

Beyond trade, Albanese is expected to seek reassurances from Trump about the Aukus security pact, under which the U.S. and U.K. will help Australia acquire nuclear-powered submarines. Canberra remains confident the defense partnership will endure despite recent political uncertainty in Washington.

As China tightens its grip on the global rare earth market, Australia is stepping forward as a crucial supplier for the United States and its allies. A successful deal in Washington could not only strengthen economic and security ties but also mark a major step toward building a more resilient and diversified global supply chain for critical minerals.