Albanese doubles critical minerals subsidies to $4b

The roundtable was expected to cut out companies that have not started producing and focus on those which are, helping the US move faster to a more self-reliant critical minerals processing and manufacturing position.

China currently dominates the critical minerals processing sector, with about 85 per cent of cobalt and 75 per cent of the world’s lithium processed in China.

Australian mining chiefs attending the roundtable include Lynas Corporation’s Amanda Lacaze, Nyrstar’s Dale Webb, Alliance Nickel’s Paul Kopejtka, Alpha HPA’s Rimas Kairaitis, Australian Strategic Materials’ Rowena Smith and Lithium Australia’s Simon Linge.

Australian Robyn Denholm, who chairs Tesla, and Lockheed Martin chief James Taiclet will be among American company participants. The Biden administration’s Indo-Pacific policy czar Kurt Campbell will also attend.

Arguing that critical minerals and rare earths were the “building blocks” of a clean energy future, Mr Albanese said Australians would benefit from the fresh investment in critical minerals, through technology, skills, jobs and economic gains.

“Australia is committed to building sustainable and secure critical minerals supply chains with the United States,” he said.

“The expansion of the Critical Minerals Facility will help to build supply chains with the United States and support our shared clean energy, manufacturing and defence ambitions.”

The doubling of the facility takes to $6 billion the total value of government “value-adding investments” for the resources sector.

Under the facility, companies can apply for loans, financial guarantees or performance and warranty bonds to help establish themselves and develop export markets.

Ms King said the government was providing significant support to de-risk investment in critical minerals.

“The Critical Minerals Facility is a cornerstone of that support, providing finance to strategically significant projects which can crowd in private investment,” she said.

While the IRA has been criticised for distorting investment flows in favour of the US and triggered fears Australian producers will face heavily subsidised competition from US businesses, Mr Albanese said he would tell US policymakers and legislators they cannot cut emissions alone.

He said the Climate, Critical Minerals and Clean Energy Transformation Compact he signed with President Joe Biden in May made space for Australian firms to access some of the mechanisms under the IRA.

“My message is that they have an interest in a global reduction in emissions, that the United States can’t view these issues as just a nation state,” Mr Albanese said.

“That they need to view these issues as one in which we, as partners, are able to contribute as well.”

Focus on producers not explorers

Lynas, which processes light rare earth minerals that are needed to make the magnets that go into car engines and wind turbines, among other products, had its US government funding more than doubled in August this year.

The US Department of Defence is now contributing about $US258 million ($384 million) towards construction of Lynas’ heavy rare earths refinery in Texas, up from the initial pledge of $US120 million in June 2022.

Companies such as Lynas are participating in the roundtable to help fashion the US and Australian initiatives to bring other smaller companies to the production stages to give more firepower against China.

Last year, Ms Raimondo committed publicly to help finance Australian critical minerals projects through America’s export financing arms, saying she was “going one by one breaking down barriers and getting things done” to facilitate investment in such projects.