Australia Announces 440 Billion KRW Rare Earth Project... Response to China's Hegemony

China Produces 70-80% of Rare Earth Elements

[Asia Economy Reporter Kim Hyunjung] Australia announced a funding support plan worth 500 million Australian dollars (approximately 445.9 billion KRW) to counter China's rare earth dominance in the global market, South China Morning Post (SCMP) reported on the 16th.

According to the report, Prime Minister Scott Morrison revealed the details of this project on the same day. Morrison stated, "Recently, Australia is facing the most difficult and dangerous security environment in over 80 years," adding, "The events unfolding in Europe remind us of the close relationship between energy security, economic security, and national security."

Angus Taylor, Australia's Minister for Energy, explained, "China currently controls 70-80% of the world's major mineral production and continues to strengthen its dominance over these supply chains." Rare earth elements are widely used not only in smartphones, computers, secondary batteries, and electric vehicles but also in defense and space sectors.

The projects receiving funding include rare earth separation plants, battery material processing plants, and vanadium processing plants. Additionally, funds will be provided to companies for market entry.

The subsidy budget for bringing major mineral projects to market is expected to include about 200 million Australian dollars. Australia has already allocated 2 billion Australian dollars in funding for related industries.

Australia produces half of the world's lithium output and ranks second in cobalt production and fourth in rare earth production. Australia's resource and energy export value amounts to 348.9 billion Australian dollars.

This content was produced with the assistance of AI translation services.