SYDNEY – Australia has become the newest member of the G7 critical minerals alliance after signing multiple agreements with Canada on Wednesday, according to Canadian Prime Minister Mark Carney.
The move represents part of a broader Western effort to reduce dependence on Chinese supply chains for essential minerals needed in semiconductor manufacturing and military applications. China currently dominates both the production and processing of these crucial materials.
“Earlier today, we signed a series of new agreements on critical minerals, including Australia joining the G7 minerals alliance – the largest grouping of trusted democratic mineral reserves in the world,” Carney announced during his address to Australia’s parliament on the final day of his three-day diplomatic visit.
The partnership brings together two major mineral producers, with Australia and Canada collectively responsible for approximately one-third of worldwide lithium and uranium output, plus more than 40% of global iron ore production.
Canadian Energy and Mining Minister Tim Hodgson indicated Tuesday that his government favors creating production partnerships and purchasing coalitions over establishing price controls to address supply chain concentration issues.
Australia has already committed funding toward establishing a strategic reserve of critical minerals, starting with antimony and gallium stockpiles.
Carney’s Australian visit is part of a broader Asia-Pacific tour that includes stops in Japan and India, designed to strengthen relationships between what he termed “middle powers.”
Beyond mineral cooperation, the two nations plan to expand collaboration in defense operations, maritime security, international trade, and artificial intelligence development, according to statements from Carney’s office prior to the visit.
