US Eyes Australian Minerals to Challenge China’s Dominance

The U.S. government is actively seeking to invest in Australian critical minerals companies to decrease its dependence on China. This initiative, part of a broader strategy to diversify mineral supply chains, aligns with past actions by China to restrict exports of rare earths. Such constraints have affected U.S. and European industries, especially the automotive sector.

Recent meetings in Washington emphasized government readiness to engage financially with companies by assessing proposals through various funding channels. The discussions involved several top U.S. officials, including former mining executive David Copley of the National Security Council. The goal is to have projects ready by 2027.

The U.S. plans to use diverse funding pathways, such as traditional debt, equity, and prepayment models, to support these mineral projects. These efforts come amid tensions over China's central role in global mineral supply and Australia's potential as an alternative supplier. Additionally, the discussions could play into broader geopolitical talks, including the AUKUS defense pact.

(With inputs from agencies.)