Australia’s Prime Minister has outlined plans for a strategic minerals stockpile to strengthen domestic supply chains and reduce dependence on China.
Prime Minister Anthony Albanese has pledged to establish a $1.2 billion Critical Minerals Strategic Reserve as part of a broader plan to enhance Australia’s economic and national security resilience.
The proposed fund, announced during a federal election campaign appearance, would allow the government to directly purchase or secure future access to minerals considered essential for advanced manufacturing, defence, and clean energy technologies. This includes minerals used in the production of semiconductors, electric vehicle batteries, and military equipment.
“We need to do more with the natural resources the world needs, and that Australia can provide,” Albanese says.
According to details published by Reuters, the government intends to work with commercial project developers to acquire minerals through direct purchases or agreements granting future rights to supply. A dedicated task force will be formed to define the final structure and scope of the reserve, with implementation expected to begin in the second half of 2025.
The announcement comes amid ongoing global concern about concentrated supply chains, particularly China’s dominance in the processing and export of rare earths and other strategic minerals. Australia is home to significant reserves of many such resources and has been positioning itself as a key alternative supplier to international markets.
The initiative is seen as a response to recent geopolitical tensions and trade restrictions, including China’s curbs on exports of minerals such as gallium and graphite.
While the policy was announced during the election campaign period and not via official government channels due to caretaker conventions, it reflects Labor’s emphasis on sovereign capability and industrial development.
Further consultation with industry stakeholders is expected before the reserve is formally launched.
