FX.co ★ U.S. Considers Stake in Australian Miners to Cut China Reliance

The United States government has put forward a proposal to purchase equity stakes within Australian companies specializing in critical minerals, in an effort to enhance supply channels and reduce dependency on China, according to a Reuters report that quotes executives who have recently returned from Washington. The initiative seeks to establish alternative supply chains following China's decision to restrict exports of rare earths and permanent magnets, a move made in retaliation to U.S. tariffs. This restriction has implications for U.S. and European automotive manufacturers. Critical minerals such as lithium, cobalt, and rare earth elements are essential components in clean energy, semiconductors, and defense technologies. Meanwhile, preliminary discussions are underway between China and Malaysia regarding the development of a rare earth processing facility. This project likely involves Malaysia's sovereign wealth fund, Khazanah Nasional, and a China-backed state firm. Should this project come to fruition, it would signify a major departure for China, which has traditionally prohibited the export of its processing technologies to uphold its dominance in the industry.