The United Kingdom is looking at building bilateral critical minerals partnerships with various countries, including Australia.
On Tuesday (November 25), UK Industry Minister Chris McDonald was said to have mentioned a collaboration with Australia under the AUKUS defence pact, according to a news report by Reuters.
McDonald added that critical minerals were ‘very much’ part of that relationship because of their role in defence supply chains.
UK Critical Minerals Strategy
“This new, targeted Critical Minerals Strategy sets the UK’s long-term ambition for securing critical minerals and harnessing our competitive advantage in recycling and innovative midstream processing—the transformation of mined or recycled materials into refined or upgraded forms suitable for manufacturing,” the new Critical Minerals Strategy read, published on November 22.
Called Vision 2035, the strategy aims that no single country provides more than 60 percent of the UK’s supply of any one critical mineral.
It also targets that the UK meets 10 percent of its critical mineral needs from its own mines and 20 percent from recycling.
Key policy objectives of the strategy include optimising domestic production and building resilient UK and global supply networks.
‘Part of the strategy is our (Ministry of Defence) procurement plan as well, which includes stockpiling of critical minerals,’ McDonald told Reuters.
The UK laid out in its new Critical Minerals Strategy that measures could include stockpiling, including through procurement mechanisms, to align with the Ministry of Defence’s commitments to build resilience in critical mineral supplies for UK defence.
Under UK’s Defence Industrial Strategy 2025 sector plan, priority outcomes include, but are not limited to, making defence an engine for growth, backing US-based businesses and developing a resilient UK industrial base.
This is also where the partnership with Australia under the AUKUS defence pact lines up.
Why Australia?
Besides the AUKUS defence pact, Australia has become a significant topic in bilateral partnerships among nations following its rare earths deal with the US.
The US$8.5 billion deal, signed in mid-October, includes a US$1 billion investment from both the US and Australia over the next six months for initial projects.
Among the projects aiming to take advantage of the recent Australia–US deal is the Yangibana rare earths project owned by Wyloo Metals and Hastings Technology Metals Limited (ASX:HAS,OTC:HSRMF).
Following the US, Australia also signed a joint declaration of intent on critical minerals with Canada in early November.
The new agreement builds on the Australia-US rare earths deal and is between Australia’s Department of Industry, Science and Resources and the Department of Natural Resources of Canada.
It covers the establishment of a ministerial for critical minerals, project financing, policy alignment and regulation and information sharing.
In 2023, Australia also signed a statement of intent with the UK to strengthen cooperation on critical minerals.
“(The statement) further strengthens Australia’s resolve to develop our critical minerals sector to be a global supplier of the resources needed for clean-energy technology, such as batteries, electric vehicles, solar panels and wind turbines,” Minister for Resources and Northern Australia, Madeleine King said.
“We will work closely with the UK to build resilient, sustainable, and transparent supply chains for critical minerals, which help both the UK and Australia to lower emissions and achieve net zero commitments.”
King also travelled to the UK in the same year, calling it a “chance to outline” how Australia is partnering with industry and other countries to broaden global supply chains and boost investment in mining and processing key critical minerals.
Rare earths have been heavily spotlighted in October in Australia following China’s expansion of control over rare earth exports, a sector crucial to global tech and defense industries.
The October 10 announcement from the Ministry of Commerce adds five new elements —holmium, erbium, thulium, europium and ytterbium—along with key refining technologies to its export control list.
The new rules carry a global reach: any foreign company producing rare earth materials or magnets using Chinese-origin equipment or technology must now obtain an export license from Beijing.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
