China reacts to US-Australia critical minerals deal
File photo: Oct. 31. Workers transport soil containing rare earth elements for export at a port in Lianyungang, Jiangsu Province, China, in 2010.
Stringer | Reuters
China responded to the US-Australia on Tuesday Dealing with critical minerals Resource-rich rare earth countries must take “a proactive role” in stabilizing their supply chains of the critical mineral.
A spokesman for China’s Ministry of Foreign Affairs was asked about the US and Australia’s landmark mineral deal to counter Beijing’s hegemony.
“The creation of global production and supply chains is the result of market and corporate choices,” Guo Jiakun said, according to NBC.
“Resource-rich nations with important minerals should play an active role in maintaining the security and stability of industrial and supply chains and ensure common economic and trade cooperation,” he added.
Rare earths are a category of minerals that are severe For many products from cars to semiconductors.
US President Donald Trump and Australian Prime Minister Anthony Albanese on Monday Signed the contract The White House intends to increase the supply of rare earths and other critical minerals.
The framework agreement, described as an $8.5 billion deal between the allies, comes shortly after China imposed stricter export controls on rare earths.
China’s Ministry of Commerce earlier this month announced expanded restrictions on exports of rare earths and related technologies to prevent “misuse” of the minerals by the military and other sensitive sectors.
Western Automotive Industry Group is one of them Raise the alarm On new export controls, it said the measures could pave the way for supply chain chaos.
Australian Prime Minister Anthony Albanese (L) and US President Donald Trump shake hands after signing an $8.5 billion rare earth minerals deal during a bilateral meeting in the Cabinet Room of the White House on October 20, 2025 in Washington, DC.
Anna Moneymaker | Getty Images
Demand for rare earths and critical minerals is expected growing rapidly As in the coming years The clean energy transition gained momentum.
China is Undisputed leader critical mineral supply chain, Accounting accounting for approximately 60% of the world’s production of rare minerals and materials. US officials earlier warned This is a strategic challenge for more sustainable energy sources.
rare earth stock
George Chevley, natural resources portfolio manager at Ninety One, described the US and Australia deal as a long time coming, but a “good deal” designed to increase supply of vital minerals outside of China.
“From an investment standpoint, it’s not so clear cut. It’s a very small sector,” Chevley told CNBC “Squawk Box Europe“Tuesday.
“And obviously when you’re dealing with an area that’s politicized and where government money is essentially being pumped in as a subsidy, that’s telling you that it’s going to be difficult to make it work economically,” he added.
Shares in some of Australia’s biggest critical metals and rare earths companies jumped on Tuesday, while others lost ground after early rallies.
Lynas rare earthAustralia’s largest rare earth producer by market capitalization fell 7.6% after posting a profit earlier in the session. Mineral sand miner Iluka Resources Lithium producers fell 0.1% Pilbara Minerals Added about 2.6%.
Latrobe Magnesium, Australia’s primary producer of heavy metal magnesium, gained more than 15%.
Stateside, rare earth stocks appeared slightly lower in the premarket. Heavy metals fell 3.8%, USA Rare Earth fell 2.4%, and MP literature 1.8% lost.
— CNBC’s Evelyn Cheng and Dylan Butts contributed to this report.
Post Comment