Chalmers to showcase $1.2b critical minerals reserve in strategic talks

On Sunday (11 January), Treasurer Jim Chalmers announced he was travelling to the United States to tout Australia’s critical minerals resources in order to bolster relations with key allies amid global geopolitical instability.

“Whether it’s our resources or renewable energy, our skills or stability, Australia has exactly what the world needs, when the world needs it, and that’s well understood by our closest counterparts,” Chalmers said in a statement.

“In these meetings, my focus will be on showcasing Australia’s strengths as an investment destination, promoting resilience in global markets and sharing insights on the global economic outlook.”

The meeting, which Chalmers said would focus on strengthening key critical minerals supply chains, is set to include finance ministers from G7 countries as well as India, Mexico and the Republic of Korea.

The Treasurer flagged that he would showcase Australia’s $1.2 billion critical minerals strategic reserve, announced in April 2025. The government plans to have the reserve operational from the second half of 2026.

Australia has previously leaned on its critical mineral reserve as a bargaining chip with the US. Commonwealth Bank economists have noted that the reserve would likely be welcomed by the US as an early step in reducing China’s ongoing dominance over the global critical minerals sector.

China accounted for 61 per cent of rare earth element (REE) production and 92 per cent of their processing in 2023, the International Energy Agency (IEA) estimated, giving it a near monopoly on the critical minerals that the US relies upon for its national security.

Outside of China, Australia is one of the few countries well-placed to establish capabilities in mining and refining critical minerals. Australia’s 2023–30 critical minerals strategy has sought to establish sovereign capability in critical minerals processing.

Chalmers said he would update international colleagues on progress towards establishing the critical reserve, which he noted was all about “boosting Australia’s critical minerals sector and strengthening supply chains for our international partners.”

He added that he would have bilateral meetings with US treasury secretary Scott Bessent, UK chancellor Rachel Reeves, Japanese finance minister Satsuki Katayama and Canadian minister of finance and national revenue François‑Philippe Champagne.

“In the face of growing global uncertainty and ongoing geopolitical tensions, this is a critical time to confer with counterparts,” Chalmers said.

“Collaborating on critical minerals will help to make our economies and our supply chains stronger and more resilient and make our people big beneficiaries of global churn and change.”