Australia and the US sign Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths

Global demand for critical minerals and rare earths continues to increase in tandem with progress in clean energy infrastructure and advanced technologies. China dominates these markets, with control of approximately 70% of rare earths mining and 90% of processing capabilities built up over decades of development, with clear implications for supply chain vulnerabilities and disruptions, dependent on geopolitical relationships and tensions. As a result, many nation states have recently taken steps to secure supply and create more diverse markets for these commodities.

On 20 October 2025, Australia and the United States of America (United States) signed the United States-Australia Framework For Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths (Framework).

With the overall aim of diversifying supply, the Framework makes provisions for a non-binding “policy and programmatic action plan”, designed to support the supply of raw and processed critical minerals deemed crucial to the defence and advanced technology industries of both countries. The Framework seeks to achieve “resilience and security of critical mineral and rare earth supply chains, including mining, separation and processing”.¹

In particular, the Framework sets out the following key goals of cooperation between the parties:

1. Secure supply: accelerate the secure supply of critical minerals and rare earths necessary to support defence and advanced technologies manufacturing.
2. Invest in mining and processing: encourage government and private sector support including by way of:

1. Project selection: to address gaps in priority supply chains by identifying projects of interest.
2. Financing: the parties will take steps to contribute at least AUD1 billion in financing to projects located in each of the United States and Australia, which are expected to generate end product for delivery to domestic buyers.
3. Investment support: The parties will jointly develop mechanisms to bolster critical minerals and rare earths supply chains.  
4. Ministerial activity: The parties will promote investment in mining by convening a Mining, Minerals and Metals Investment Ministerial.

3. Accelerate Permits: Measures will be taken to accelerate processes, permits and project lead times for critical minerals and rare earths mining and processing.
4. Introduce price mechanisms: a standards based system will be adopted whereby parties can trade freely and within a pricing framework, inclusive of price floors and similar mechanisms. International partnerships will be developed to form a global framework to assist with international pricing challenges.
5. Protect asset sales: Authorities and diplomatic tools will be enhanced, to review and deter critical minerals and rare earths asset sales on national security grounds.
6. Improve sustainability: supply chain diversification will be achieved through investment in minerals recycling technology to ensure management of critical minerals and rare earth scrap.
7. Engage with third parties: Engagement with third parties will enhance supply chain security.
8. Undertake geological mapping: Mapping of respective domestic mineral resources will be undertaken to support diversified critical mineral supply chains.
9. Provide rapid response: A Supply Security Response Group will be established and led by the U.S. Secretary of Energy and the Australian Minister for Resources to identify priority minerals and supply vulnerabilities, developing a coordinated plan to accelerate delivery of processed minerals under this framework.²

The Framework will support a pipeline of projects worth approximately AUD13 billion with the view to expanding Australia’s mining and processing capabilities. In addition, Australia continues to seek further critical minerals and rare earth trade agreements and partnerships, including with the European Union³ and the United Kingdom.⁴

Of further note, throughout October 2025, the United States made additional bilateral agreements across Asia, forming a US-Japan Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths and memorandums of understanding with both Malaysia and Thailand to increase investment and cooperation in the area of critical minerals. A United States-Cambodia trade agreement was also made, minimising trade barriers and tariffs between the countries. With specific regard to critical minerals, under this agreement, Cambodia will facilitate United States investment “to explore, mine, extract, refine, process, transport, distribute, and export critical minerals and energy resources…on terms no less favourable than it accords to its own investors in like circumstances”.⁵

HFW Comment

This flurry of recent activity across the critical minerals and rare earths sector saw shares in a number of Australian minerals companies soar and in November, Sunrise Energy Metals raised AUD30 million towards pre-construction activities at a planned scandium mine in Parkes, New South Wales, with downstream processing of output likely to be facilitated in the United States. The longer-term impact of the Framework – and the numerous additional bilateral agreements in place – will depend on the levels of maintained commitment, investment and policy support made available. However, the notoriously long lead times associated with critical mineral and rare earth project development suggest that China will retain its market dominance for some time yet.

Footnotes

1. US-Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths
2. United States-Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths | Department of Industry Science and Resources
3. EIB Global and Australia strengthen cooperation on critical raw materials
4. UK signals possibility of critical minerals agreement with Australia – Australian Mining
5. Agreement Between the United States of America and the Kingdom of Cambodia on Reciprocal Trade – The White House