Australia’s Albanese pledges to set up critical minerals strategic reserve

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By Renju Jose

SYDNEY (Reuters) – Australia’s ruling centre-left Labor government on Thursday pledged an initial investment of A$1.2 billion ($763 million) to set up a strategic reserve of critical minerals as it looks to create a separate supply chain in a market dominated by China.

Prime Minister Anthony Albanese, holding a slender lead in polls ahead of a national election nine days away, said the reserve would make use of the country’s mineral deposits and boost its economic resilience.

“We need to do more with the natural resources the world needs, and that Australia can provide,” Albanese said in a statement.

The push comes after China placed export restrictions on several minerals, vital to make everything from smartphones and EV batteries to infrared missiles, squeezing supply to the West, after President Donald Trump imposed tariffs on Chinese goods.

China is a top global producer of 30 of the 50 minerals considered critical by the U.S. Geological Survey, while Australia has some of the largest critical minerals deposits.

Albanese said the government would buy critical minerals from commercial projects or set up an option to buy at a given price, holding security over the assets. The government will also establish stockpiles of some minerals produced under offtake agreements.

“It will mean we can deal with trade and market disruptions from a position of strength, because Australia will be able to call on an internationally significant quantity of resources in global demand,” Albanese said.

Minerals held by the strategic reserve would be made available to domestic industries and key international partners.

A task force will be created to consult and finalise the scope and design of the strategic reserve, which is expected to be operational in the second half of 2026, Albanese said.

($1 = 1.5721 Australian dollars)

(Reporting by Renju Jose in Sydney; Editing by Sonali Paul)