U.S. Offers Equity in Australian Minerals to Counter China

The United States government has offered to purchase equity in Australian critical minerals companies to diversify its supply chains and diminish its dependence on China. This move follows restrictions placed on rare earth exports by China in response to U.S. tariffs. During a delegation visit to New York and Washington, officials from the National Security Council and the International Trade Administration expressed openness to various funding models, including traditional debt and prepayments for defense stockpiles, aiming to make projects operational by 2027.

In tandem with these efforts, the U.S. Department of Energy is acquiring 5% stakes in Lithium Americas and its Thacker Pass joint venture with General Motors. Australia has indicated it may sell shares of its own strategic mineral reserve to allies such as Britain.

These financial initiatives precede a scheduled October 20 meeting in Washington between Australian Prime Minister Anthony Albanese and President Donald Trump. The two leaders are expected to discuss the strategic mineral reserve and conduct a review of the AUKUS defense pact.