Australia has gone on to win the backing of the US for the development of the critical minerals industry as both countries reached an agreement to coordinate policies as well as investment to support the growth of the sector.
Australia is responsible to supply almost half of the lithium found in the world, as well as other minerals like rare earths used in batteries for electric vehicles and defence, amidst a worldwide push to diversify the supply chains away from China, which is a dominant producer.
The agreement is also going to take care of clean energy since the country sees itself as a major producer of ammonia as well as hydrogen. As per Prime Minister Albanese from Australia, clean energy, climate, and critical minerals happen to be an ambitious agreement, and it is sure to expand and diversify their clean energy supplies. The agreement, as per him, will promote sustainable processing as well as the supply of critical minerals and also support development when it comes to clean energy products, hydrogen, and battery tech.
It is well to be noted this deal also goes on to pave the way for Australian suppliers pertaining to minerals and renewable energy to be treated like domestic suppliers as per the US Defence Production Act. This is indeed set to boost investment back into Australian firms that happen to be supported by the US Inflation Reduction Act regulation.
Albanese told a press conference at QUAD Leaders’ Summit in Hiroshima that this is all about building a massive opportunity for Australia and that he cannot underline how significant it is. Apparently, the ministers from the US National Security Council as well as Australia’s Department of Industry will come together to take part in a task force that will create a plan by the end of 2023 so as to encourage a robust industrial partnership and also quicken the development. Both leaders opined that the compact is going to establish clean energy, climate, and shared energy industrial base as pillars when it comes to the alliance of both Australia and the US.
As per one of the mining business stalwarts, the deal is indeed very positive for Australia as it is seeking investment from its allies to elevate the critical mineral processing sector since it goes on to build green hydrogen in terms of exports and also mining. He added that all this should indeed push Australia over the line.
Notably, Australia is also going to be announcing a national strategy in terms of critical mineral processing in no time, the government confirmed in the week ending May 20.