The development of the essential minerals agreement to coordinate policies and investments to assist the industry’s expansion, Australia and the United States have gained each other’s support for the development of industries.
In an effort to diversify the supply chain away from leading producer China, Australia provides about half of the globe’s lithium as well as additional minerals like rare earth’s that are used in battery for electric cars and the military.
The accord will also address clean energies as the nation positions itself to become a significant producer of ammonia and hydrogen
Anthony Albanese, the prime minister of Australia, told lawmakers on Monday. That the agreements on the the environment, vital minerals, and sustainable energy was “ambitious.“
Our clean energy source will grow and be more diverse as a result. It will help the development of clean hydrogen, batteries. & other clean energy products, as well as the sustainable processing and supply of essential minerals.
In accordance with the United States Defence Production Act. The agreement also sets the path for Australian providers of these minerals and renewable energy to be treat as domestically suppliers.
With the help of legislation like the historic United States Inflation Reduction Act (IRA). Which has reenergized the world’s renewable energy supply chain since August, this is expected to increase investment back into Australian companies.
After a meeting of the Quad leaders on Sunday in Hiroshima, Albanese told the press. “This is about opening up a huge potential for Australian I can’t emphasise how crucial this is.
The two leaders said in instructions announcing the agreement on Saturday that ministers from the Australian Department of Industry and United States National Security Council will participate in a task force that will create a plan by year’s end to promote more robust industrial cooperation and accelerate development.
According to them, the agreement will make a shared industrial basis for energy, clean energy. And the environment a key tenet of the Australia-US Alliance.
The agreement will be “very, very positive” for Australia, which is looking for investments from Neighbouring to expand its crucial mineral processing industry while simultaneously developing renewable hydrogen for export, according to mining tycoon Andrew Forrest
According to Forrest, this should tip Australia over the edge, according to Sydney radio network 2GB. Through Fortescue Future Industries, Forrest is growing into a significant hydrogen producer while also holding investments in solar and wind energy.
The Australian government announce last week that a national strategy for processing crucial minerals will be unveil soon.