Demand for critical minerals in the US is set to increase.
New, ‘green economy’ initiatives from the Biden Administration will trigger aggressive plans for renewable energy development, smart grids and a large electric vehicle (EV) industry. The renewables sector will now surpass the defence sector as a customer for critical minerals.
Global supply chains will continue to re-align. The new US administration has approached critical minerals policies and initiatives as a bipartisan issue. It will continue Trump-era policies of stimulating production in the US and allied countries.
Increased demand and supply chain diversification will boost demand for Australian critical minerals in the medium term. Opportunities for Australian exporters include:
- supplying rare earth materials for EV permanent magnet motors among tiered suppliers
- selling custom battery-grade lithium, nickel, manganese, cobalt and graphite cathode/anode precursors into US-based EV battery manufacturing clusters
- improving prospects for Australian rare earth companies to partner with US manufacturers and processors.