Breakingviews - US-Australia Critical Minerals Agreement is a Significant Move

Written by Emily J. Thompson, Senior Investment Analyst

Source: Reuters

Updated: Oct 21 2025

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Source: Reuters

Critical Minerals Pact: U.S. and Australia have committed approximately $4 billion to enhance mining and processing of critical minerals, aiming to reduce China's dominance in the sector, though significant challenges remain.
Australia's Resources: Australia, with the fourth-largest reserves of rare earths and a strong mining industry, is positioned as a key player in the critical minerals market, supported by U.S. investment.
Investment Details: The initial investments include $200 million for Alcoa's gallium refinery and $100 million for Arafura Rare Earths, both of which are in early development stages and will take years to become operational.
Future Challenges: Environmental approvals and a shortage of skilled labor are significant hurdles, and ongoing government support for these projects may be uncertain under future administrations.

About the author

Emily J. Thompson

Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.