Anthony Albanese says his minerals stockpile won’t solve Trump’s tariff war – but will give us ‘leverage’
The PM says a strategic reserve of minerals like cobalt, lithium and nickel would give Australia “leverage” with Donald Trump – but experts say his plan needs to go much further.
Federal Election
Don't miss out on the headlines from Federal Election. Followed categories will be added to My News.
Labor’s plan to stockpile critical minerals is not big enough on its own to woo US President Donald Trump to the table for a deal on tariffs, but Anthony Albanese has told business leaders a reserve of minerals like cobalt, lithium and nickel for domestic use and key international partners would give Australia “leverage” in uncertain times.
But the Prime Minister later stopped short of saying if he believed he could get Mr Trump to the negotiating table on tariffs with the promise of access to Australia’s future stockpile.
“We know that our critical minerals are in demand,” he said.
Mr Albanese said he was prepared to negotiate on tariffs in a “constructive way”.
He said the reserve would encourage investment in critical minerals on top of Labor’s scheme to provide a tax benefit to companies that mine and process the metals.
Strategic Analysis Australia founder Michael Shoebridge said thinking strategically about Australia’s critical mineral and rare earth resources was the right principle, but a “much bigger investment” in production and processing was required.
“There needs to be a whole production chain. The hard bit to do at scale is processing and refining, which is what China has captured as a market globally,” he said.
“That is a multibillion-dollar venture that I think would be best done in a joint way with partners like Japan, South Korea and the US.”
Mr Shoebridge also said Labor’s $1.2bn stockpile plan was unlikely to be big enough to entice Mr Trump into granting Australia an exemption from US tariffs.
“We just handed over $800m – a suitcase full of cash, essentially – for AUKUS, and that didn’t stop the tariffs,” he said.
“We have to keep things in perspective and a billion dollars is nothing to a US president.”
Defence expert Peter Jennings said “in principle” the idea of a critical minerals stockpile was “a good one”.
“But there is a lot of detail to be worked out,” he said.
“The focus should be on the so-called heavy rare earths, which are import in military technology.
“Mr Albanese should bring together private sector leaders, and people who understand geopolitics and strategic competition, to work out a practical plan.
“This initiative can help our relationship with President Trump and both sides of Australian politics should work to promote that.”
Minerals Council of Australia chief executive Tania Constable welcomed the investment and acknowledged it “may increase Australia’s chances of limiting the impact of US tariffs”.
But she said the idea was “not without domestic risk” and could impact the commercial viability of mining operations by putting continued downward pressure on commodity prices.
Ms Constable said “escalating costs” in Australia, like energy and the impact of Labor’s industrial relations laws, were “eroding” the nation’s ability to compete with producers like China.
The Coalition has criticised Labor’s reserve plans, with Opposition resources spokeswoman Susan McDonald saying it was too little too late.
“For the duration of Labor’s term in office the entire world and our entire Asia-Pacific region has seen a sharp increase in national security threats and challenges,” she said.
“Yet despite this playing-out in full view and with the full knowledge of the Labor government, they have waited for polling booths to open before announcing they will start to talk to our allies and set up a task force.”
More Coverage
Originally published as Anthony Albanese says his minerals stockpile won’t solve Trump’s tariff war – but will give us ‘leverage’
‘Climate charlatans’: Greens’ big call on Labor
With less than a week before Australia votes, the Greens have revealed a key demand Anthony Albanese will need to consider if he needs to form minority government.
‘Should be ashamed’: Dutton’s telling blow-up
With the polls against him, and time running out, Peter Dutton unleashed in Sunday’s final leaders’ debate. But whether his fury served his purpose is yet to be seen.