Australia is turning to the world's largest advanced economies to fund a new strategic stockpile of essential resources in Western Australia, aiming to solidify its role as a global supplier of materials vital for modern technology and defence.
G7 Partners Sought for Strategic Reserve Funding
Resources and Northern Australia Minister Madeleine King announced the plan in Rockingham on Monday, confirming the federal government will actively seek investment from G7 nations including Japan and the United States. The goal is to establish a strategic reserve of critical minerals such as antimony, gallium, and rare earths, with the facility intended to be operational by the end of 2026.
"We'll continue to engage very actively with industry, but also with our international partners, who we know want to be involved in Australia's world leading initiative," Ms King stated. She emphasised the project's aim to create secure international supply chains for these high-demand commodities.
The announcement was timed as Treasurer Jim Chalmers prepared to meet with G7 finance ministers in Washington. Minister King confirmed that these key allies would be directly approached for financial backing, highlighting Australia's historical reliance on foreign investment to build its industrial capacity.
Antimony First in Line for Stockpiling
Minister King identified antimony as one of the first minerals to be targeted for the reserve. This element is a crucial component in the manufacture of armour-piercing munitions, among other defence and industrial applications. She acknowledged the initiative would not generate immediate revenue but expressed confidence in its long-term value.
"It won't be revenue upside in the immediate term, but I'm confident, as we change the dynamics of this global market... that there will be an upside for the Australian taxpayers," King said. She described the critical minerals sector as "severely challenged" but pointed to strong international demand for alternative, secure supply sources as a reason for optimism.
The Minister also rejected concerns that government involvement could distort market prices, framing the reserve as a mechanism for greater international cooperation and supply chain stability.
Industry Calls for Speed and Competitiveness
The Chamber of Minerals and Energy of Western Australia (CME) welcomed the focus but urged the Commonwealth to avoid delays. CME Chief Executive Aaron Morey stressed that Western Australia already ranks as the world's fourth-largest producer of rare earths and holds about half of Australia's known critical minerals reserves.
"The world needs what WA's got," Mr Morey said. He called for close collaboration with industry on policy design and emphasised the need for Australia to remain internationally competitive on factors like energy costs, taxation, and approval timelines to fully capitalise on its resource potential.
Minister King concluded by outlining the broader economic benefits, predicting the government's investment would generate jobs not only in mining but also in future advanced processing and manufacturing within Australia.
