- China urges resource nations to help stabilize rare earth supply chains.
- U.S. and Australia sign $8.5B deal to reduce reliance on Beijing.
- Market reactions mixed as rare earths sector faces fresh uncertainty.
China has urged resource-rich nations to take a “proactive role” in maintaining the stability of global critical mineral supply chains, following the new U.S.–Australia deal aimed at countering Beijing’s dominance in the sector.
Responding to the agreement, Chinese Foreign Ministry spokesperson Guo Jiakun said the formation of global production and supply networks “is the result of market and corporate choices.” Guo emphasized that countries with abundant rare earth resources should “safeguard the security and stability” of industrial supply chains and ensure “normal economic and trade cooperation.”
Washington and Canberra Strengthen Strategic Supply Lines
The statement came after U.S. President Donald Trump and Australian Prime Minister Anthony Albanese signed an $8.5 billion rare earths and critical minerals framework at the White House. The agreement is designed to strengthen non-Chinese supply channels for key materials used in electric vehicles, semiconductors, and renewable technologies.
The timing is notable—China recently tightened export restrictions on rare earths and related technologies, citing national security concerns. Western industry groups have warned that these curbs could trigger fresh volatility in the already strained global supply chain.
Market Reaction and Industry Impact
Shares of major Australian rare earth producers saw mixed trading following the announcement. Lynas Rare Earths dropped 7.6% after early gains, while Latrobe Magnesium surged more than 15%. Meanwhile, U.S. companies such as MP Materials and USA Rare Earth slipped in premarket trading.
Analysts say the deal marks a clear step toward supply chain diversification, though profitability remains uncertain. “When government money enters such a politicized sector, it signals economic challenges,” noted George Cheveley, portfolio manager at Ninety One.
Also Read: China’s Rare Earth Export Curbs Trigger Supply Chain Crisis for Europe’s Auto Industry
Global Stakes in the Critical Minerals Race
China currently accounts for about 60% of global rare earth production, giving it significant leverage in the clean energy transition. As global demand for lithium, nickel, and rare earths continues to soar, competition for supply security is set to intensify — and Beijing’s latest comments suggest it intends to remain central to the conversation.
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