Critical minerals deal: pulling the chain on Australian sovereignty.

Written by: Nick G. on 23 October 2025

 

(Credit: www.weeklytimesnow )

When it comes to rare earths and critical minerals, supply chain dominance equals military dominance.

As an imperialist superpower, the US is capable of squeezing the suppliers of needed resources through subservient politicians of the supplying country. 

For example, the Ukraine–United States Mineral Resources Agreement is an agreement between the two countries establishing terms for joint investment in Ukraine's natural resources, including critical rare-earth elements, oil, and gas, as well as providing for reconstruction efforts. No-one would argue that it was an agreement between equals, and Zelensky was probably a fool to believe that the agreement would guarantee the US backing that he sought from Trump.

Albanese is likewise a fool if he believes that the one-sided minerals agreement he has signed sitting next to the US President will guarantee the delivery of US nuclear-powered submarines.

But believing he is helping the US sidestep China’s near-control of rare earths and critical minerals fuels his delusions.

So, what is the agreement all about?

The official United States-Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths, signed on October 20, contains few details.

The media release from Albanese’s office provides little more. As you might expect from a government determined to bury transparency along with changes to the Freedom of Information Act.

Instead, we need to go to the US Embassy fact sheet on the agreement.

Here we find that “the U.S. and Australian governments intend to invest more than $3 billion together in critical mineral projects in the next six months, with recoverable resources in the projects estimated to be worth $53 billion”.

Two projects are identified in the statement from Albanese’s office: the Alcoa-Sojitz Gallium Recovery Project in Wagerup, Western Australia, and the Arafura Nolans project in the Northern Territory.

Gallium is a soft, silvery element with a low melting point of 30°C. It will melt in a human hand, much as does Albanese in the palm of President Trump. It does not exist as a free element in the Earth's crust; its availability is fundamentally determined by the rate at which bauxite, zinc ores, and coal are extracted. It is produced exclusively as a by-product during the processing of these ores. As of July 2023, China accounted for between 80% and 95% of its production.

Together with germanium it is key to the semiconductor industry and there is a 'chip war' between China and the US. When the US restricted exports of semi-conductors to China, China started restricting exports of both materials. 

What the US Embassy Fact Sheet reveals, but not mentioned in the PM’s media release, is that the “U.S. Department of War will invest in the construction of a 100 metric ton-per-year advanced gallium refinery in Western Australia, further advancing self-reliance in critical minerals processing.”

That is, US self-reliance, not Australia’s. It is direct investment and control of operations by the US Department of War on Australian territory.

The Arafura Nolans project, 135km north of Alice Springs, is focused on the development of rare earth minerals, particularly neodymium and praseodymium (NdPr). These elements are crucial for various technologies, including electric vehicles, wind turbines, magnets and to create strong metals for use in aircraft engines. 

The neodymium magnet made from praseodymium alloy is one of the most powerful and widely used rare earth magnets. The magnets are three times stronger, and one-tenth the size of conventional magnets.

Currently China produces 85 per cent of the world’s NdPr output. 

Arafura’s biggest shareholder with a 10 per cent slice, is Gina Rinehart’s Hancock Prospecting. 

Australian super funds pushed into the mix

The US Embassy fact sheet also tells us that “Australia’s superannuation funds will increase investments in the United States to $1.44 trillion by 2035—an increase of almost $1 trillion from current levels.”  

Who has given assent to the superannuation funds of Australian citizens  to be used to prop up the US war machine?

And who will benefit?  According to the US Embassy, “This unprecedented investment will create tens of thousands of new, high-paying jobs for Americans.”

For Americans.  Not for Australians. Not for rural roads, for schools and hospitals.

And since we throwing money at the Americans, why not tip some more into the quicksand of AUKUS. The Embassy is pleased: “Since February, Australia has contributed $1 billion to the U.S. Government to expand and modernize the U.S. submarine industrial base, with another $1 billion by the end of the year.”

Labor politicians set to benefit

It would be nice to think that there might be a few Labor politicians with a touch of the Whitlams about them (not to mention Rex Connor), and who might raise an objection or two to this sell-out of Australia.

But not likely.  For as online media Crikey has revealed, there are plenty of Labor politicians with their hands in the rare earths and critical minerals industry.

Top of the list is former federal secretary of the Nurses Federation and president of the ACTU Ged Kearney. Her interests are held by her partner Leigh Hubbard, former Firies Union and Vic THC leader. The investments comprise Lynas Rare Earths, Ilika Resources, Northern Minerals, LaTrobe Magnesium, CZR Resources, Lake Resources and Syrah Resources.

Other Labor politicians identified by Crikey are Tom French, Gordon Reid, Libby Coker, Meryl Swanson and Zaneta Mascarenhas.

Albanese heads a Government arguably more firmly and dangerously aligned with US imperialism than any other since sacking of Whitlam.

Albanese boasts that the cooperation on critical minerals and rare earth supply chains with the US is in Australia’s national interest, but it is really pulling the chain and flushing Australian sovereignty down the drain.

The question of “national interest” is, in any case, not something abstracted from the reality of class in Australia. It is very much a class question and the working class gains nothing from the likes of Albanese hiding behind it.

 

 

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