Aukus pact, rare earth production will keep Australia self-reliant, Albanese says

While Australia will welcome Chinese investments in critical minerals on merit, Canberra will ‘protect national sovereignty’ by boosting manufacturing

Anthony Albanese also described the Aukus pact with the US and UK as ‘more than nuclear submarines … It is about the future’

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Australian PM Anthony Albanese speaks at the National Press Club in Canberra. Photo: Bloomberg

Published: 6:19pm, 22 Feb 2023Updated: 6:35pm, 22 Feb 2023

Australia will welcome investments by China in critical minerals on merit although it will seek to boost and retain manufacturing in the sector at home, Prime Minister Anthony Albanese said.

He made the comments on Tuesday at the National Press Club in Canberra, where he also declared the Aukus alliance the “single biggest leap in our defence capability in our history” during a wide-ranging speech highlighting the importance of shoring up the country’s security, self-reliance and sovereignty.

Next month, the government is set to unveil the first details of the pact between Australia, Britain and the United States signed in 2021, revealing in particular the nature of the nuclear-powered submarines ordered through the deal.

Two Australian Collins class submarines. In 2021, Australia, the UK and US announced an enhanced trilateral security partnership under which Australia will acquire a number of nuclear-powered submarines. Photo: EPA-EFE/File

But Albanese said Australia’s national security lay not only in defence but also in its international engagement in the Asia-Pacific, and reaffirmed his government’s efforts towards “stabilising” the country’s relationship with its largest trading partner, China.

Relations between Beijing and Canberra have been frozen since 2020 following years of tensions, but there have been signs of a thaw since Albanese came into power in May 2022.

When asked if Australia would be open to not just trade but more foreign investments from China, particularly in the critical minerals sector – ambitions expressed by Beijing’s ambassador in Canberra Xiao Qian last month – Albanese said all proposals would be considered on merit.

China is the world’s leading processor of many raw critical minerals including lithium and rare earths.