Australia’s Resources Minister Says France Eager to Invest in Critical Minerals

France is showing increased interest in investing in Australia's critical minerals sector, according to the country's resources minister. The push comes as nations seek to diversify their supply chains away from China for materials essential to electronics and defense technologies.

Australia’s resources minister revealed Thursday that France is among several nations expressing strong interest in backing the country’s critical minerals industry, as international partners rush to secure alternative supply sources beyond China’s dominance.

Speaking during the Minerals Week summit in Canberra, Australian Resources Minister Madeleine King told Reuters that multiple countries with advanced manufacturing capabilities are seeking investment opportunities following Australia’s landmark agreement with the United States last October.

“Since the framework agreement with the U.S., that work has taken on new urgency from some other partners as they make sure they also have access to critical minerals,” King explained during the interview.

“France is more and more keen,” she added.

Australia has spent four years developing its critical minerals sector, focusing on rare earth elements and other materials crucial for future technologies including electronics and defense systems. The nation aims to provide countries with alternatives to China, which currently dominates global production.

Beyond the $8.5 billion investment pipeline established with the United States, Australia has signed cooperation agreements covering the critical minerals sector with Japan, South Korea, India, France, Germany, and Britain.

While France has participated at policy and financing levels through organizations like export credit agency Bpifrance Assurance Export, it has not yet committed to the large-scale project funding seen from the U.S. and Japan. The French trade commission in Sydney did not respond to requests for comment.

Australia is actively pursuing additional billions in investment for 49 mining operations and 29 processing facilities. The expanding critical minerals sector is projected to generate A$18 billion ($12.52 billion) in export revenue during the financial year beginning July 1.

Earlier this month, Australia joined the G7 Critical Minerals Production Alliance to support its expansion goals. On Tuesday, the country finalized a free trade agreement with the European Union following eight years of negotiations, potentially streamlining EU access to Australian critical minerals.

“Many other countries just aren’t used to getting involved in mining and mining-style financing, but they’re going to have to, if they want to…have that secure supply,” King noted.

The minister emphasized that Australia’s commitment to the sector requires long-term thinking, having already provided A$28 billion in financial backing since the current government took office in May 2022.

“If you want to compare timelines, it took (China) 40 years,” she said. “We would like to do it quicker. But we do need to think of it as a long-term proposition.”

King pointed out that Australia previously supported its massive iron ore and liquefied natural gas industries during their early development, suggesting critical minerals may present even greater challenges.

Australia is establishing an A$1.2 billion strategic reserve concentrating on antimony, gallium, and rare earths for partner nations, expected to become operational later this year. The reserve will likely include price floor mechanisms while ensuring Australia benefits from potential price increases.

“When there is an upside, the government should be able to get some of that benefit, but also exit this part of the arrangement,” she explained.

The United States is simultaneously developing Project Vault, a $12 billion minerals stockpile program.

“And we see our reserve as being able to be the catalyst to feed into Project Vault,” King said, noting that specific details remain under discussion.