Resources Minister Madeleine King has backed Australia’s critical minerals relationship with the US following the recent election of Donald Trump.
Resources Minister Madeleine King has backed Australia’s critical minerals relationship with the US, following the recent election of Donald Trump.
The US is a key Australian partner in the critical minerals space, but Mr Trump’s election has created uncertainty over the future of the relationship, with some pundits predicting positives for the local sector and others less glowing.
Some have speculated Mr Trump could wind back some incentives under the Inflation Reduction Act, in a move that would have implications for Western Australia’s critical minerals sector.
Speaking at The University of Western Australia this morning, Ms King said the US under its new leadership would remain an important trading and security partner in the critical minerals arena.
“We have most of these minerals here in the ground,” she said.
“They are traded in thin markets, or markets that are opaque or subject to manipulation.
“It is important that we bolster the sector’s capability to detect, prevent and mitigate foreign interference, and that’s why we are working with partner countries like the US, Japan and [South] Korea to strengthen market supply chains.”
Australia’s nickel industry has suffered in 2024 as the price of the commodity crashed, following an influx of new nickel supply from Chinese-backed mines in Indonesia.
The lithium price has also come off significantly, with a number of projects closing or being scheduled for care and maintenance; most recently Mineral Resources’ Bald Hill mine.
An imminent Trump presidency may create another layer of uncertainty for some, but Ms King said the government would work with the new administration in the best interests of both nations.
“I’ve seen a lot of voices out there confidently predicting what this incoming US administration will mean for our economy,” she said.
“One thing we know is that it does not change our geology.
“The world still needs our resources and critical minerals, and the economies of our geology are unarguable.”
The comments follow Prime Minister Anthony Albanese’s commitment during a radio interview yesterday to advocate against a trade war between China and the US.
Ms King was at The University of Western Australia for the launch of the ARC Centre in Critical Resources for the Future, an organisation that aims to cultivate the next generation of geoscientists through development programs for postgraduate students.
Funded by the Australian Resource Council, the centre will be run across UWA, The University of Queensland, The University of Adelaide and the Australian National University.
Ms King said fostering critical minerals development would be key, and conceded Australia had lagged in funding over the years.
“The truth is, we are playing catch up to our principal competitors in a global race for critical minerals, and more or less, processing capacity and superiority,” she said.
“Some may say, and they have a point, that we should have brought on government investment and involvement in this new industry years ago.
“We cannot change what we didn’t do in the past.
“We cannot change what we didn’t do in the past, but we can make sure that we support this industry now and into the future.”
The ARC Centre in Critical Resources for the Future will be led by UWA-based professor Marco Fiorentini.
