Australia & Canada Sign Critical Minerals Pact to Boost Supply

Australia and Canada signed new agreements on critical minerals on Thursday, strengthening cooperation between the two resource-rich nations as Western countries seek to diversify supply chains and reduce reliance on China.

The deals were announced during Canadian Prime Minister Mark Carney’s visit to Australia, where he addressed the Australian parliament. It was the first time a Canadian leader delivered a speech to the parliament since 2007. The agreements reflect growing economic and strategic cooperation between the two countries.

A key part of the arrangement is Australia joining the G7 critical minerals alliance, which focuses on securing supply chains for minerals essential to modern industries. These include lithium, uranium and other materials used in semiconductors, renewable energy systems and defence technologies.

• Australia and Canada sign pact to secure critical minerals supply
• Mark Carney visit boosts resource cooperation and G7 minerals alliance
• Deal aims to reduce reliance on China in global supply chains

Carney said the agreements would strengthen cooperation between countries that produce and supply critical minerals. The alliance is intended to support stable supply chains and expand production among trusted partners.

Western governments have raised concerns about the concentration of mineral production and processing in China, which holds a large share of global refining capacity for several critical minerals. Demand for these materials is rising as countries expand electric vehicles, renewable energy projects and digital infrastructure.

Governments and companies are seeking alternative sources to ensure stable access to these resources. Partnerships between countries with large mineral reserves are increasingly viewed as important for securing long-term supply.

Australia and Canada are major mining producers. Together they account for about one-third of global lithium and uranium output and more than 40% of global iron ore production. Both countries have extensive mining sectors and regulatory systems that attract international investment.

Officials said the agreements will also support cooperation beyond mining. The two countries plan to expand collaboration in areas including defence, maritime security, trade and artificial intelligence as part of broader bilateral ties.

Australia has already increased its focus on critical minerals. The government recently announced funding to establish a national stockpile of key minerals, starting with antimony and gallium, which are used in electronics, semiconductors and defence equipment.

Carney’s visit to Australia is part of a wider trip to the Asia-Pacific region that also includes Japan and India. The visit reflects Canada’s efforts to strengthen economic partnerships in the region and deepen cooperation with countries that play important roles in global supply chains.

Also Read: Broadcom CEO Sees AI Chip Sales Crossing $100 Bn by 2027

Demand for critical minerals is expected to grow significantly in the coming years as countries accelerate energy transition plans and expand advanced manufacturing. Agreements between resource-producing countries are likely to play a larger role in shaping supply networks and investment in the sector.