Australia and Canada Strengthen Partnership on Critical Minerals to Reduce Reliance on China

Australia has signed a new agreement with Canada to boost cooperation and trade in critical minerals, a move aimed at securing resilient global supply chains and reducing dependence on China. The deal was announced during the Group of Seven (G7) energy and environment ministers’ meeting in Toronto.

Australian Resources Minister Madeleine King and her Canadian counterpart Tim Hodgson formalized the joint declaration of intent to enhance collaboration on critical minerals. The initiative seeks to deepen bilateral ties between the two resource-rich nations and support sustainable economic growth through innovation and strategic trade partnerships.

King emphasized the importance of the collaboration, stating, “I look forward to working with Canada to build resilient supply chains that support innovation and economic growth.” The partnership aligns with both nations’ efforts to strengthen supply chain security amid growing global demand for materials essential to clean energy technologies and advanced manufacturing.

Critical minerals—including rare earth elements, lithium, cobalt, and nickel—are vital for producing batteries, electric vehicles, and renewable energy infrastructure. However, G7 countries, except Japan, remain heavily reliant on China for sourcing and processing many of these resources. By joining forces, Australia and Canada aim to counterbalance China’s dominance and ensure more stable access to these key materials.

The agreement follows a series of high-level discussions between Australian Prime Minister Anthony Albanese and Canadian Prime Minister Justin Trudeau, who met in the United Kingdom in September to discuss strengthening cooperation in the critical minerals sector. It also comes shortly after Australia and the United States reached a similar deal to enhance supply chain resilience and secure future access to strategic minerals.

Through these partnerships, Australia continues to position itself as a global leader in the responsible development and supply of critical minerals crucial to the clean energy transition.