Overview

• Prime Minister Anthony Albanese pledged A$1.2 billion to establish a national reserve of critical minerals, including lithium, cobalt, nickel, and rare earths, with operations targeted to begin in mid-2026.
• The reserve will source minerals through offtake agreements and provide stockpiles for domestic industries and international partners, aiming to reduce reliance on China's near-monopoly in the sector.
• A dedicated task force will finalize the reserve's design, complementing A$11 billion in tax credits and loans to expand Australia's domestic mineral processing capacity.
• The initiative is framed as a tool for economic resilience and trade leverage, with potential to negotiate tariff carve-outs with the United States amid ongoing trade tensions.
• Opposition figures criticized the plan as ineffective and overdue, while the government emphasized its importance for national security and global supply chain stability.