US critical minerals deal supports WA's priorities
Following a historic meeting at the White House in Washington DC between the Australian Prime Minister and the US President, the United States committed to supporting Australia's critical minerals sector and advancing AUKUS objectives.
Western Australia will be a significant beneficiary of a landmark bilateral framework on critical minerals and rare earths between Australia and the United States.
The agreement between Australia and the US paves the way for greater cooperation and investment in rare earths and critical minerals mining and processing—which will help diversify WA's mineral supply chains and support its burgeoning defence, renewable energy and advanced manufacturing sectors.
With world-class reserves of lithium, nickel, cobalt and rare earths, WA is uniquely positioned to benefit from and deliver on the aims of this historic agreement with one of Australia's closest allies.
Under the framework agreement, the US and Australia will each provide at least $US1 billion in investments towards an $US8.5 billion pipeline of priority critical minerals projects in Australia and the US over the next six months.
WA will benefit immediately from a $US200 million investment in concessional equity finance by the Commonwealth Government in the Alcoa-Sojitz Gallium Recovery Project in Wagerup south of Perth.
The US Government is also making an equity investment with a right of offtake.
This project is expected to provide up to 10 per cent of total global supply of gallium, an essential input for defence and semiconductor manufacturing.
The Alcoa-Sojitz Gallium Recovery Project is a trilateral arrangement between Japan, the US and Australia which will strengthen collective economic security.
Australia and the US have also reaffirmed their commitment to delivering AUKUS, which will see defence become WA's second-largest industry and make Henderson the southern hemisphere's largest naval maintenance and shipbuilding hub.
