‘Price manipulation’ spooking investors eyeing Australia’s critical minerals, Chalmers warns

Price rigging and global oligopoly in the critical minerals sector are spooking investors and pose a “big threat” to Australia’s economy and security, Treasurer Jim Chalmers has warned in a thinly veiled shot at China. Critical minerals are crucial for modern technology, from smartphones and cars to green power sources and advanced weapons systems. China’s dominance in mining and refining these minerals has unnerved Western governments and left them scrambling to build alternative supply chains to loosen Beijing’s grasp. That was the focus of talks Mr Chalmers attended with the world’s top economies in Washington this week. “Price manipulation and concentration is very substantially distorting critical minerals markets,” he said on Tuesday (AEDT). “That is making investors nervous, that threatens access to these essential resources, and that’s a big threat to our economic security and national security for all of us. “I think that’s a unanimous view here. “We’ve all got an interest in securing these supply chains and attracting more investment.” China accounted for 59 per cent of mining, 91 per cent of refining and 94 per cent of permanent magnet production in 2024, according to the International Energy Agency. Beijing spooked the US and its allies in October by slapping strict export controls on several rare earths vital for defence and high-tech manufacturing, including the powerful American-made F-35 stealth fighter. Later that month, Anthony Albanese and Donald Trump signed a landmark agreement unlocking a $13bn pipeline of projects across both countries, using loans, equity stakes, and offtake agreements. China has also plummeted the price of nickel by flooding the international market in what analysts broadly agree as an attempt to crush competition. The effects have been devastating for some economies, such as the French overseas territory of New Caledonia, where nickel mining has been brought to the brink of collapse. During his visit to Washington, Mr Chalmers met with finance ministers from the G7 countries as well as India, Mexico and South Korea. He said that “everyone around the table is at different parts of the supply chain” and that his message was that “as Australians, we’re big suppliers and we’d like to become even bigger, more reliable suppliers for all of you, to meet your industrial needs”. “Really, addressing this challenge is one of our highest priorities to get these critical minerals settings right,” Mr Chalmers said. “We’ve announced more than $28 billion in support for critical minerals industries in the past three years, which is quite substantial in the context of our budget. “We’ve legislated new production tax incentives to promote development of the sector. “We’ve reformed our environmental approvals processes. “We’ve reformed our foreign investment framework, we’re about to do our second round of foreign investment reforms to strengthen the regime where risks are highest, but to substantially liberalise it where risks are lower.” Former Trump trade adviser Kelly Ann Shaw warns countries need an “alternative plan,” otherwise China will exercise its critical mineral “chokehold” once again. Treasurer Jim Chalmers is to meet with the Trump administration in a push for Australia’s role in securing critical minerals. “Before the holiday break, countries around the world were really feeling the squeeze from China’s rare earth export controls,” Ms Shaw told Sky News Australia. “There is concern on the US side that other countries are going to grow complacent, that they're not going to see this as such an urgent issue.” He also pointed to Australia’s critical minerals strategic reserve. The government announced on Monday it would focus on stockpiling antimony, gallium and rare earth elements. Antimony has a wide-range of uses, such as hardening bullets and making missile guidance systems and night-vision goggles. Gallium is also key for military equipment, including advanced radar systems. Both are essential to renewable energy and consumer technologies, while rare earth elements are needed to make high-performance permanent magnets. The reserve will let the government buy up mineral supplies from local mines and sell them to friendly countries that need them.