The United States has announced a $400m investment in an Australian rare earth mine, in a deal aimed at securing the supply of scandium, a crucial mineral used in defence products.
The move comes as China, the world's largest producer of rare earth minerals, has been restricting exports, leading to concerns over global supply chains.
Rare earth minerals, including scandium, are essential components in the production of various defence and technology products, such as missiles, fighter jets, and electronics.
The investment in the Australian mine is part of a broader effort by the US to reduce its reliance on Chinese imports and diversify its supply of critical minerals.
By securing a stable supply of scandium, the US aims to support its defence industry and mitigate the risks associated with China's export restrictions.
The deal highlights the growing importance of rare earth minerals in the global economy and the increasing competition for access to these critical resources.
The investment is expected to have significant implications for the global rare earth market and the future of US-Australia relations, as the two countries work together to secure their strategic interests.
<small>Source: Al Jazeera — read the original story there.</small>