Australia joins G7 critical minerals alliance, Carney says
Synopsis
Australia will join the G7 critical minerals alliance after signing new cooperation agreements with Canada, Prime Minister Mark Carney said. The move comes as Western nations work to reduce dependence on China for strategic minerals used in semiconductors, renewable energy and defence. Canada and Australia together account for around one-third of global lithium and uranium production and more than 40% of global iron ore output.
Australia will join the G7 critical minerals alliance after signing a series of new agreements with Canada, Canadian Prime Minister Mark Carney said on Wednesday. The move comes as Western nations step up efforts to diversify supply chains away from China, which dominates global production and processing of key minerals used in semiconductors and defence.
Key Highlights
- Australia to join the G7 critical minerals alliance.
- Canada and Australia signed new bilateral agreements on mineral cooperation.
- Both nations produce around one-third of global lithium and uranium.
- Combined, they account for over 40% of global iron ore production.
- Australia has begun building a critical minerals stockpile, starting with antimony and gallium.
Speaking in Australia’s parliament on the final day of his three-day visit, Mark Carney said Canada and Australia had signed multiple agreements to strengthen cooperation on critical minerals development and supply chains.
Carney also announced that Australia would join the Group of Seven minerals alliance, describing it as the largest grouping of trusted democratic mineral reserves globally.
Western governments have been seeking ways to reduce reliance on China, which holds a dominant share of global production and processing capacity for several minerals essential for advanced technology and defence systems.
Strategic minerals move to the centre of global policy
Critical minerals, including lithium, uranium, antimony and gallium, play a key role in manufacturing semiconductors, renewable energy technologies and military systems.
The concentration of supply in a limited number of countries has raised concerns among advanced economies about economic security and geopolitical influence over strategic resources.
Canada and Australia together account for around one-third of global lithium and uranium production and more than 40% of global iron ore output, making the partnership significant for efforts to build alternative supply chains.
Production alliances seen as a solution
Energy and Mining Minister Tim Hodgson said Canada believes forming a production alliance or “buyers’ club” among partner countries could be a more effective way to manage supply risks than relying only on market pricing.
Such coordination could allow countries to align investment, production planning and purchasing strategies for key minerals.
China remains the dominant force in the processing of many rare earth elements and strategic minerals, prompting Western economies to pursue more resilient supply chains.
Australia has already committed funding to establish a national critical minerals stockpile, aimed at strengthening domestic industry and improving supply security.
Broader strategic cooperation in the Indo-Pacific
Carney’s visit to Australia is part of a wider Asia-Pacific tour that also includes Japan and India. The trip aims to deepen cooperation between Canada and Australia, often described as “middle powers”, across defence, maritime security, trade and artificial intelligence.
The expansion of the G7 minerals alliance is expected to lead to closer coordination on investment, production and trade policies among participating countries.
Further details on implementation and potential joint projects are likely to emerge as Canada and Australia formalise their cooperation framework in the coming months.
Quick FAQs
Q1. What is the G7 critical minerals alliance?
A partnership among advanced economies to secure stable and diversified supplies of strategic minerals.
Q2. Why are critical minerals strategically important?
They are essential for semiconductors, batteries, renewable energy systems and modern defence technologies.
Q3. Why are Western countries diversifying mineral supply chains?
To reduce reliance on China, which dominates processing and production of several key minerals.
Q4. Why are Canada and Australia important in the minerals market?
Both countries are major producers of lithium, uranium and iron ore, making them key suppliers for alternative global supply chains.
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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