Australia to prioritise critical minerals refining and European market in updated strategy

Australia plans to give greater attention to critical minerals refining and processing under an updated strategy, as competition for investment grows and concerns over supply chains continue.

Resources Minister Madeleine King said the revised strategy would guide the industry's next stage of development, with a focus on creating greater economic and strategic value from critical minerals. She said Australia would prioritise processing activities where it already has, or could develop, a competitive advantage.

Australia is a major supplier of critical minerals, including rare earths used in defence and renewable energy. However, China dominates the refining stage of the supply chain. Western countries are seeking to expand their own processing capabilities and diversify supplies of materials important to the energy transition and national security.

King said market conditions had become more difficult since Australia introduced its original critical minerals strategy in 2023. She further said, "The strategy will ensure Australia remains focused on areas where we can create the greatest long-term value."

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Australia seeks stronger critical minerals trade with Europe

Speaking at the International Mining and Resources Conference in Sydney, Australia's ambassador to the European Union, Angus Campbell, said the updated strategies could create opportunities to increase exports to Europe. Currently European market receives a relatively small share of Australia's critical minerals shipments.

Australia is also developing a strategic reserve of critical minerals for its allies. In January, the government said it would prioritise antimony, gallium and rare earth elements under the AUD 1.2 billion (USD 842 million) initiative.

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Campbell said, "There's a lot of untapped potential there." He added, "It's not great piles of ore sitting somewhere in the outback…It's much more about offtake agreements, forward contracts, demand and supply aggregation, these sorts of models." 

The European Union has also shortlisted tungsten, rare earths and gallium for its first joint critical minerals stockpile.

Italy's special envoy for critical raw materials, Alberto Castronovo, expressed interest in Australia's strategic reserve. Meanwhile, France's interministerial delegate for supplies of strategic minerals and metals, Benjamin Gallezot, called for closer cooperation with Australia across the supply chain, from mining to refining.

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Gallezot identified tungsten, rare earths and battery materials as priority areas, noting that access to tungsten mines alone would not be sufficient without the refining capacity needed to process the material.