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AAP
AAP
Politics
Zac de Silva

US asks Australia for help on critical minerals supply

The United States is hoping to enlist Australia in a trade battle with China over the control of the global critical minerals supply, as a new survey reveals deep skepticism of the Trump administration among voters.

US Treasury Secretary Scott Bessent said the fight over metals like lithium, cobalt and copper was a case of "China versus the world."

"We're going to be speaking with our European allies, with Australia, with Canada, with India and the Asian democracies," he told an event hosted by American broadcaster CNBC.

"We're going to have a fulsome group response to this because bureaucrats in China cannot manage the supply chain or the manufacturing process for the rest of the world."

China has introduced tighter export restrictions for rare earth metals, which are crucial for products like electric vehicles, but also defence technologies including missiles and fighter jets.

US President Donald Trump has threatened to slap 100 per cent tariffs on Chinese imports in response.

But behind the scenes the Trump administration is also working to break Beijing's stranglehold on the global critical minerals supply chain, by striking deals with countries like Australia.

Treasurer Jim Chalmers is planning to meet US economic council director Kevin Hassett in New York this week, where the issue is likely to be discussed.

At the same time, a new poll shows just 16 per cent of Australians think the president's second term had been good for Australia.

The United States Studies Centre found more than half of those surveyed thought Mr Trump's second term had been bad for the nation.

Support for our alliance with the US has also dropped, compared to previous figures, with 42 per cent believing the military pact makes Australia more secure, a 13 point drop on the 2024 survey.

Just under one-third said the alliance made Australia less secure.

QLD EXERCISE TALISMAN SABRE 2021
Support for Australia's alliance with the US has also dropped, compared to previous figures. (Albert Perez/AAP PHOTOS)

Defence Industry Minister Pat Conroy is also in the US ahead of the prime minister's meeting with Mr Trump next week, and said the White House was keen to work more closely with the federal government.

"Obviously, there's strong interest in what we're doing around rare earths and critical minerals," he told ABC Radio.

There's been fierce speculation that Australia could strike a deal on critical minerals with the US during Anthony Albanese's visit.

Mr Conroy has also progressed a deal with the US Department of War and weapons manufacturer Lockheed Martin for Australia to begin producing guided missiles by the end of the year.

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