France Eyes Aussie Mineral Deals as Australia Pushes for Global Supply

Australia is ramping up its ambition to become a key supplier of minerals that power gadgets and defense tech. In the past four years, Canberra has secured agreements with the United States, Japan, South Korea, India, Germany and Britain to build this industry. Now France is showing interest too, especially after Australia teamed up with the U.S. in a new framework that promised $8.5 billion of investment for critical minerals projects.

The Australian Resources Minister says the U.S. agreement created a sense of urgency among other partners. “France is more and more keen,” she told reporters at the Minerals Week summit in Canberra.

France has begun policy discussions and financing talks, working with its export‑credit agency Bpifrance Assurance Export. However, unlike the U.S. and Japan, France has not yet committed large‑scale funds to Australian projects.

Australia needs billions more for 49 mining sites and 29 processing plants. The country expects these projects to bring in about A$18 billion ($12.5 billion) of export revenue by next July. To support this growth, Australia joined the G7 Critical Minerals Production Alliance and signed a free‑trade agreement with the European Union, which could open EU markets to Australian minerals. The U.S. deal was more detailed, naming specific projects, while the EU agreement left many details to be worked out.

The government has already invested A$28 billion in the sector since 2022. Minister King notes that building a critical‑minerals industry is a long‑term project—she compares it to China’s 40‑year journey. While Australia has already helped grow its iron ore and LNG markets, critical minerals will take more time to develop.

To secure supplies for allies, Australia is creating a strategic reserve worth A$1.2 billion that will hold antimony, gallium and rare earths. The reserve is expected to start operating later this year and will include a floor price, ensuring Australia benefits if market prices rise. The government hopes the reserve can feed into the U.S. Project Vault, a $12 billion minerals stockpile.

The minister stressed that many countries are still new to mining financing. “They’ll have to get involved if they want secure supply,” she said. The goal is to keep critical minerals flowing, reduce reliance on China, and strengthen Australia’s role in global technology supply chains.