Ministers from the US, EU, UK, Japan, Australia and New Zealand will meet in Washington, USA this week to discuss a strategic alliance on important minerals.
This summit is seen as a step to mend the fractured transatlantic relationship and pave the way for other alliances to help countries minimize risks from China, including a steel-focused alliance.
On January 30, Australia said it would establish a strategic reserve of 1.2 billion Australian dollars for minerals that are vulnerable to supply disruptions from China. Last April, China restricted rare earth exports in response to US tariffs.
This is the 2nd summit on rare earth minerals in 1 month, with the participation of about 20 countries, including G7 members - UK, USA, Japan, France, Germany, Italy and Canada, along with India, South Korea, Mexico, Australia, New Zealand and possibly Argentina.
One of the expected discussions is that the US ensures a minimum price for important minerals and rare earths. A news report last week said that Washington decided not to raise this proposal in the discussion, causing Australian stock prices to fall. Australia is already positioning itself as an important mineral supplier to replace China through its decision to stockpile elements such as antimony and gallium.
Australia is following in the footsteps of Japan, which has actively built reserves for many years to create resilience to China's willingness to cut supply.
Australian Minister of Natural Resources Madeleine King said that the US decision not to set a minimum price "will not prevent Australia from pursuing its important mineral reserve program".
The meeting in Washington was agreed upon by US Secretary of State Marco Rubio, as he and representatives of participating countries hope to quickly promote the non-China supply chain with support in terms of prices and investment.
Strengthening the essential mineral supply chain with international partners is paramount for the US economy, national security, technological leadership and a sustainable energy future," the US State Department stated in a statement before the summit.
Many sources from the EU said that if the negotiations are successful, a joint statement will be issued, which can be considered an important turning point in relations with allies, as the bloc cooperates with the US to minimize risks from China instead of continuously fighting tariff threats from the US.
The EU also plans to use the summit to put pressure on the US to lift new tariffs on steel derivatives globally, which would lead to sanctions on steel content in products containing steel components, from aluminum doors and bicycles to hair straighteners and offshore wind turbines.
The administration of President Donald Trump has conducted multilateral consultations since October 2025 when agreeing to a 12-month free trade agreement with China, which has threatened to cut off the supply of rare earths in the escalating tariff dispute between the two sides.
