Australia and Canada have signed a new joint declaration to strengthen cooperation across critical minerals supply chains as part of efforts to reduce a reliance on China.
The Joint Declaration of Intent on Critical Minerals Collaboration commits both large-scale like-minded producer nations to new ministerial level meetings, special envoys and formal plans for cooperation.
The two nations each hold some of the world’s most significant critical minerals reserves. They will work together to expand trade and investment in critical minerals, support joint research, and align on policy approaches that recognise the challenges faced by producing nations.
The pact was signed during the G7 Energy and Environment Ministers’ Meeting in Toronto by Resources minister Madeleine King and Canada’s Minister for Energy and Resources Tim Hodgson.
“Our national governments have long worked together on resources-sector development,” Ms King said.
“As producing nations, it is important we collaborate to ensure both our communities and industry can benefit from growing demand for critical minerals. By working together, we can build secure, diversified and sustainable critical-minerals supply chains.”
Ms King said the partnership would support both nations’ economic and national security interests, with critical minerals “at the heart of the economic and national security of both our countries”.
The declaration follows Australia’s critical minerals deal with the United States last month. Both countries are to contribute at least US$2 billion (A$3.1 billion) to rare earths projects over the next six months.
The framework, which aims to strengthen industrial cooperation and secure supply of materials vital to energy and defence sectors, sets out a US$8.5 billion project pipeline, including the Alcoa-Sojitz Gallium Recovery Project in Western Australia.
The US deal is a strategic effort to overcome China’s stranglehold on the sector, former Australian diplomat Paul Myler said last month.
He told InnovationAus.com that Australia has to acknowledge “we walked away from this area 20 years ago”.
“The Chinese have spent 20 years refining their technology, and it’s really hard to sort of jump in and kick start this research now to catch up with them. They have a technical advantage at the moment,” said Mr Myler, who now runs Perth-based geopolitical risk advisory firm StratQ.
Both Australia and Canada are seeking to reduce reliance on China’s dominance in global processing and refining. The new declaration signals another shared intent to coordinate policies and investment with like-minded partners.
Minister King said she looked forward to continuing work with Canada to “build resilient supply chains that support innovation and economic growth”.
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