Former Australian ambassador to the United States, Kim Beazley, has urged Prime Minister Anthony Albanese to enhance the AUKUS security pact by integrating a new agreement focused on critical minerals. This strategic move aims to fortify the Trump administration’s backing of the submarine deal, as Albanese prepares for his upcoming visit to Washington next month.
Beazley, who has also served as a defense minister and opposition leader, emphasized Australia’s unique opportunity to leverage its abundant rare earth resources to meet American demand. As the United States seeks to establish supply chains independent of China, Australia’s minerals could play a pivotal role.
The Strategic Importance of Critical Minerals
Critical minerals are essential components in modern military technology, including radar and laser systems used in fighter jets, submarines, and drones. Beazley has advocated for a third pillar in the AUKUS agreement, complementing strategic cooperation and the nuclear submarine deal, which would involve Australia financing the processing of rare earths for U.S. defense use.
“Critical minerals are the ball game for the Chinese, and it is also the main ball game for countering China,” Beazley stated in an interview. “AUKUS pillar three would be Australia taking responsibility and supplying the US with what it needs. We are totally critical here. It is really a game, set and match equation if we play it right.”
Prime Minister Albanese is scheduled to meet with U.S. President Donald Trump at the White House on October 20. A significant topic of discussion will be the status of the nuclear submarine procurement deal, currently under Pentagon review due to concerns about the U.S. capacity to fulfill its own submarine needs.
Australia’s Role in the Indo-Pacific Strategy
The Albanese administration has been advocating for the critical role of AUKUS in U.S. strategic interests, particularly in the context of the Indo-Pacific region’s geopolitical dynamics with China. On a recent broadcast of the ABC’s Insiders, Albanese linked the second pillar of AUKUS to Australia’s supply of rare earths, such as cobalt and lithium.
“[Critical minerals] could become … a part of pillar two,” Albanese remarked. “Australia has everything that is in demand, almost the entire periodic table. And whether you’re looking at lithium with the reserves that we have, or cobalt or copper or vanadium, we have great resources.”
Albanese highlighted the government’s commitment to establishing a critical minerals reserve, aiming to prevent market manipulation, as seen with nickel, to maintain competitive pricing and counteract China’s market dominance.
Economic and Geopolitical Implications
AUKUS is primarily recognized for its initial pillar, a $368 billion initiative to acquire nuclear submarines. The second pillar focuses on enhancing collaboration with the U.S. and the UK in emerging technologies such as artificial intelligence and robotics. Recent reports indicate Australia is working to finalize an agreement ensuring the U.S. has guaranteed access to its substantial mineral deposits.
Beazley pointed out that the extraction and processing of rare earths are not inherently profitable, necessitating government investment. He noted that China has used its dominance in rare earths as a geopolitical tool, prioritizing strategic advantage over financial gain.
Critical minerals encompass elements crucial for manufacturing advanced technologies, including mobile phones, computers, and semiconductors. They are also vital for low-emission technologies like electric vehicles and solar panels. China’s control over the global rare earths market poses a growing threat to Western nations’ sovereignty.
When questioned on Sky News’ Sunday Agenda about his rapport with Trump, following recent communications and a brief meeting in New York, Albanese expressed a positive view.
“I do,” he responded. “They’ve been very warm, the conversations that we’ve had. And he was very generous in the comments that he made when we discussed after my re-election. I look forward to sitting down with him.”
As the meeting between Albanese and Trump approaches, the potential expansion of AUKUS to include a critical minerals pact could significantly reshape the strategic landscape, reinforcing the alliance’s position against China’s growing influence in the region.
