THE Australian Government has released a Critical Minerals Strategy Report, exposing huge holes in the supply chain as tensions between Beijing and Washington heat up.
The 17 elements that make up the rare earths are vital to high-tech appliances for both domestic and military use, and the heavy rare earths are the fundamental component in the powerful magnets used in electric vehicle motors.
The report highlights Australia’s status as the world’s second largest producer of rare earths, and therefore perfectly positioned to supply the US with the high-tech elements, particularly the heavy rare earths that China has traditionally dominated.
Resources and Northern Australia Minister Matt Canavan said that the Critical Minerals Strategy would prepare Australia to become the alternative to Chinese rare earths.
“Our political stability, strong environmental and safety regulations and existing expertise in the resources sector also adds to our appeal as a partner in the global supply chain of rare-earth elements,” he said.
The report draws heavily on the fact that the US has no heavy rare earths separation capacity, although Lynas Corp (ASX: LYC) and Blue Line Corp, a US-based processor, signed an MoU in May 2019 to develop a medium and heavy rare earths processing plant in Texas.
On September 6, Lynas, the largest non-Chinese producer of rare earths, signed an MoU with the City of Kalgoorlie to build a cracking and leaching plant, after the company was unsuccessful in its attempts to remain in Malaysia.
Trade minister Simon Birmingham said that there was a huge opportunity for Australia to not just export raw critical minerals, but to process them as well.
“This report shows there are huge export opportunities for Australian critical minerals producers in markets such as the US where there are clear gaps in the supply chain,” he said.
“With critical minerals driving much of the innovation and technological development in industries such as defence, space, energy and advanced manufacturing, there are huge job creation and economic opportunities right here in Australia.”
