CRITICAL MINERALS ESSENTIAL TO ENERGY TRANSITION, NATIONAL SECURITY

In no other sector do the realms of the energy transition, the swirling geopolitical environment, the scarcity of natural resources, and the race for technological supremacy intersect as they do in the critical minerals sector.

This month, I participated in the 2024 Darwin Dialogue. Alongside leaders from Australia, the United States, the United Kingdom, India, Japan and the Republic of Korea, we discussed the immense challenge of leveraging Australia's natural resources, world-leading mining expertise, and geographic location (which has switched from “the tyranny of distance” to “the proximity of opportunity”). It is imperative that likeminded countries join together in the critical minerals sector not only to create jobs and prosperity, but also ensure security for us and our allies.

New and emerging technologies are developing at speed, and governments are racing to ensure their economies are not left behind. The focus on the benefit of being at the bleeding edge is manifested in several ways, including efforts to develop, create and secure AUKUS Pillar II advanced technologies. The same can be said for technologies pushing economies to decarbonise faster and more efficiently to give our economies an advantage in the green energy transition. These sectors are dependent on a reliable supply of a scarce and sought-after resources, including critical minerals and rare earths.

As US Ambassador to Australia and AmCham Patron Caroline Kennedy said this month at the Battery Minerals Conference, "[the climate crisis] is a national security and economic issue for our countries. It is an existential issue for this region, and a moral issue for our generation. It is also a massive business opportunity."

In March, the Export-Import Bank of the United States (EXIM) - the official export credit agency of the US federal government - issued a $600 million Letter of Interest to Australian Strategic Minerals to finance US content and services for construction and execution phase of the rare earths and critical minerals Dubbo Project. A few days later, AmCham met with EXIM Vice Chair Judith Pryor in Washington DC on the AmCham Alliance Summit. It is clear that Washington recognises Australia's critical roles, both strategic and economic, in this sector.

First it was oil that became commonly known as the world's most important resource. Oil was surpassed by data in the technological revolution. Many suggest critical minerals have now taken the mantle, and must be treated accordingly. Australia's comparative advantages can be leveraged through our unique connection with the world's largest economy - the United States - through the Inflation Reduction Act and the Defense Production Act, which include provisions for Australia to access funding as a domestic source.

Ambassador Kennedy noted that critical minerals are not just essential for the foundation of our modern economies, but they are "under assault." We must advance quickly, and AmCham will eagerly work with our members and partners to accelerate our collaboration, secure supply chains, and realise this economic opportunity.