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Australia's Bold Move for Rare Earths Industry: Price Floor on Critical Minerals
AUSTRALIA, AUG 5 – Australia aims to secure critical minerals supply chains by considering equity stakes in rare earth companies and price floors to encourage private investment, following a US model.
- On August 5, 2025, Federal Resources Minister Madeleine King said the Albanese Government 'certainly wouldn’t' rule out taking equity stakes in Australian rare earths miners, causing shares to surge.
- That equity investment marked the first such government step since World War II, as the US Department of Defense acquired a 15 per cent stake in MP Materials last month.
- The $1.2 billion critical minerals strategic reserve announced in April will focus on rare earths with price floor provisions under active consideration, King said.
- Companies are eyeing federal equity stakes as Lynas Rare Earths, Iluka Resources, Australian Strategic Materials and Arafura Rare Earths could vie for support, boosting stocks amid Western efforts to secure non-Chinese supplies.
- The critical minerals strategic reserve is designed to provide price certainty, de-risk projects, and attract private investment while Australia aims to position itself as an alternative to China for rare earths used in defence, electronics, and clean energy.
13 Articles
13 Articles
Australia Mulls Price Floor for Rare Earths to Back Critical Minerals Sector
Australia is considering setting a price floor to support critical minerals projects, including rare earths. Australia has been positioning itself as an alternative source of critical minerals to dominant producer China. “The floor price is but one means of how you establish a reserve,” Australian Resources Minister Madeleine King said at a media doorstep on Aug. 5. “There’s a lot of support across the community for developing this industry…for …
Australia's Bold Move for Rare Earths Industry: Price Floor on Critical Minerals
Australia's Bold Move for Rare Earths Industry: Price Floor on Critical Minerals Australia is contemplating a strategic move to introduce a price floor for critical minerals, including rare earths, as part of its effort to position itself as a viable alternative to China's dominant supply chain. The announcement by Resources Minister Madeleine King has sparked a surge in the share prices of Australian-listed rare earths companies.The government …
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