In a world defined by accelerating geo‑economic competition aimed at reducing China's control of critical‑minerals markets and supply chains, Australia's critical‑minerals ambitions hinge on a powerful but tenuous assumption: that the nation will evolve into a major supplier to the US—its largest investment partner and most consequential strategic ally. Yet today's market dynamics, policy fragmentation among partners and the US's own inward‑looking minerals strategy mean that outcome is far from guaranteed.
What is clear, however, is that Australia enters this contest with world‑leading geological endowments, a global footprint of successful mining operations, and hard‑won capabilities built over more than 60 years of modern mining and processing. Australian companies aren't just domestic producers—they're global investors, operators and technology leaders. Demand for their products is only rising as the energy transition, digitisation, automation and defence modernisation accelerate.
But market opportunity alone is no longer enough. Australia's ability to convert its mineral strength into strategic advantage is being tested by volatile global prices—often shaped by market manipulation—contradictory policies among like‑minded nations and rising competition from other mineral‑rich nations. Domestically, high construction and energy costs, an uncompetitive company tax system, acute skills shortages, regulatory uncertainty and long approval timelines threaten to blunt Australia's competitive edge.
At the same time, commercial and security partners across Europe, Asia and North America increasingly look to Australia not only for resources but also for leadership—technical, environmental, commercial and strategic. Many countries, along with the EU, have signed agreements with Australia to build more secure, sustainable and diversified critical‑minerals supply chains.
This report argues that Australia must now pivot from signing partnerships to fully activating them. That means prioritising the like-minded partners and markets where real supply‑chain integration and volume markets are achievable. China, however, will remain an indispensable market for Australian minerals.
Crucially, Australia must recalibrate its approach to onshoring. Policies built solely around domestic downstream ambitions risk underestimating the reality of global supply chains and overestimating Australia's cost competitiveness. The more strategic path is to position Australia as a dominant force across multi‑node critical‑minerals supply chains—linking Australian concentrates and intermediate products, production of Australian companies operating abroad, trusted partners' processing, manufacturing and technology ecosystems, and of course end users.
To seize this moment, Australia should also restore the predictability and competitiveness of its own investment environment.
Ultimately, the choice before Australia isn't whether to be a critical‑minerals superpower—it's whether to be an indispensable node in the world's most important supply chains. That requires ambition, disciplined policymaking, deeper strategic partnerships and a relentless focus on execution.
