Australia holds substantial rare earth element reserves, estimated to be at least 4 to 5 percent of the world's total rare earth reserves. It ranks as having the fourth largest reserves globally and is the fourth largest producer of rare earth metals. In 2024, Australia's rare earth production was about 13,000 metric tons, down from 16,000 metric tons in 2023, but the country is poised to increase production in the near future. The reserves include critical minerals such as neodymium, dysprosium, and terbium, essential for high-strength magnets used in clean energy technologies and defense applications. Australia is actively investing billions of dollars to boost mining and processing capacity, aiming to become a major global supplier and reduce dependency on China, which currently dominates about 70 percent of global rare earth mining and 90 percent of processing. The Australian government has committed $1.2 billion to a critical minerals strategic reserve and additional funds to expand mining and refining infrastructure. These efforts are part of a broader strategic partnership with the United States to enhance supply chain security and develop the rare earth sector further.
