Australia’s International Graphite Limited CEO Andrew Worland recently returned from Washington, revealing that the U.S. government has proposed to acquire stakes in Australian key mining companies as part of a plan to expand secure supply chains and reduce reliance on Chinese minerals.
Worland, who participated in an official delegation of 15 Australian key mining companies, traveled to Washington and New York in September for meetings with senior U.S. officials. His company is engaged in graphite processing and owns natural flake graphite resources and open-pit mines in Western Australia.
According to Worland, U.S. officials informed him during the meetings that if his company submits an investment or cooperation plan, the U.S. government would evaluate the plan and try to assist in its implementation through various funding channels and programs available.
The officials Worland met with included David Copley from the National Security Council’s Supply Chain Strategy unit and Joshua Kroon, Deputy Assistant Secretary for Critical Minerals and Metals at the International Trade Administration.
Worland mentioned that financing options the U.S. may consider include traditional debt financing, debt with an equity kicker, and off-take agreements, allowing the U.S. to prepay for establishing national defense reserves. He added that the focus of these plans is to ensure projects are ready by 2027.
Also present at the meeting was Cobalt Blue CEO Andrew Tong, who stated that the U.S. government has an open attitude towards investment and will flexibly leverage various financial tools. The company is seeking funding to support Australian cobalt mining and refining facilities, with plans to integrate into the U.S. supply chain.
The U.S.’s move aims to establish alternative mineral supply chains, particularly after Chinese restrictions on exporting rare earth elements and permanent magnets. These minerals are crucial for clean energy, semiconductor, defense technology, and also affect American and European automakers.
Meanwhile, the U.S. government has acquired stakes in multiple critical mining companies listed in the U.S. The Department of Energy announced on Tuesday, September 30th, that it will obtain a 5% stake in Canadian lithium mining company Lithium Americas, as well as a 5% share in the Thacker Pass lithium mining joint venture between that company and General Motors.
The U.S. government will acquire the stake in Lithium Americas through non-voting warrants. Both parties in the U.S. support the Thacker Pass project and aim to narrow the production gap between the U.S. and China. Lithium is a key material for high-tech batteries used in mobile phones, electric vehicles, and renewable energy.
In addition, Australian Prime Minister Anthony Albanese recently discussed with the leaders of the UK and Canada during a visit to the UK about plans to establish strategic mineral reserves. Australia expressed willingness to sell stakes in these reserves to allied countries, including the UK, in order to reduce dependence on China.
This strategic mineral reserve plan is expected to be a negotiating chip for Albanese when he meets with President Trump in Washington on October 20th. The Trump administration is reviewing the AUKUS defense agreement, which includes a billion-dollar plan to provide nuclear-powered attack submarines to Australia to counter Chinese influence in the Indo-Pacific region.
(This article references reports from Reuters)