"Catch up quick: The trade truce the world's two largest economies struck in early summer guaranteed the flow of crucial rare earth magnets out of China. That only lasted a few weeks, until the Chinese started cutting off supplies again and announced a new regulatory regime that would restrict global access. That prompted the U.S. to threaten fresh 100% tariffs on China, but also to accelerate the ongoing hunt for alternatives."
"Zoom in: Australia is now offering itself to the U.S. as an alternate supplier. President Trump met top Australian officials in Washington Monday to discuss what might be possible. The sides reportedly signed a deal giving the U.S. access to an $8.5 billion pipeline of Australian minerals, with both countries pledging an initial $1 billion investment in minerals processing. Yes, but: Australian rare earths reserves are about one-eighth of what China has."
Rare earth minerals are essential for modern technologies across computing, telecommunications, aerospace, defense, and energy systems. China currently dominates mining and processing of rare earths and related critical materials, including lithium, through policies like Made in China 2025. Recent Chinese supply restrictions and a new regulatory regime prompted renewed U.S. threats of tariffs and accelerated efforts to find alternatives. The United States and Australia agreed to deepen mineral cooperation, including access to an $8.5 billion Australian minerals pipeline and an initial $1 billion joint investment in processing. Australian reserves and production remain far smaller than China’s, leaving significant gaps that require expanded domestic and allied diversification.
Read at Axios
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