Australia is exploring opportunities to supply rare-earth metals to the United States, as China tightens export controls on these critical minerals. These metals are essential for defense, semiconductors, and advanced technologies like artificial intelligence. Last week, China restricted exports of 12 of the 17 rare-earth metals, which account for 70 percent of global production and 90 percent of processing. Analysts say China is leveraging this control in ongoing trade talks with the US, just ahead of an expected meeting between President Donald Trump and Chinese leader Xi Jinping later this month. Australian Treasurer Jim Chalmers indicated Canberra could fill the gap. Speaking in Washington, he said, “Australia is very well placed to be a reliable supplier to meet the critical minerals needs of the US and other markets.” Chalmers’ comments came ahead of discussions with Kevin Hassett, director of the US National Economic Council. Australia has significant rare-earth deposits, including neodymium, used in magnets for wind turbines and advanced electronics. However, the country’s reserves are roughly one-seventh the size of China’s, according to the US Geological Survey. Still, efforts to expand processing capabilities are underway. Prime Minister Anthony Albanese announced a $1.2 billion critical minerals reserve earlier this year to support domestic processing and reduce reliance on China. This follows concerns that most Australian minerals, including 90 percent of lithium, are exported to China for processing before reaching other markets. Recent deals highlight Australia’s potential role. On October 8, US firm Noveon Magnetics partnered with Lynas Rare Earths, Australia’s largest rare-earth company, to supply magnets to US defense companies. The announcement drove Lynas’ share price to a 14-year high. China’s latest restrictions cover metals including holmium, erbium, thulium, europium, and ytterbium. Companies now require special approvals from China’s Commerce Ministry to import these materials, and permits will only be granted after detailing their intended use. Beijing cited national security as the reason, emphasizing the dual-use nature of rare-earth items for both civilian and military applications. The US has responded with threats of additional tariffs. President Trump announced a potential 100 percent tariff on Chinese exports from November 1, raising concerns that the rare-earth dispute could reignite a broader trade war. US Treasury Secretary Scott Bessent described the situation as “China versus the world,” highlighting the strategic risk to global supply chains. US-Australian relations have strengthened through critical-minerals collaboration, including the establishment of a “Critical Minerals Taskforce” during the Biden administration. While previous economic tensions existed, including Trump-era tariffs on Australian exports, the relationship appears constructive. Both leaders have expressed mutual respect and a willingness to cooperate on strategic minerals. Beyond Australia, the US is pursuing alternative sources for rare-earth metals globally. Deals have been struck with Ukraine for minerals access in exchange for reconstruction investment, and talks continue with the Democratic Republic of the Congo on cobalt and lithium extraction. The US also signed a $500 million memorandum of understanding with Pakistan to build a refinery and develop rare-earth deposits. Analysts suggest Australia may be the next key partner in the US effort to reduce dependence on China for critical minerals, linking strategic security and technological advancement with resource diplomacy.