Why Australia and Japan Are Becoming Strategic Partners in Critical Minerals
Sometimes, the most interesting results can be achieved thanks to completely unexpected contributions. According to a recent ASPI analysis, the role of Australia and Japan could prove crucial to the implementation of the new G7 strategy on critical raw materials, aimed specifically at making Western supply chains more resilient and less dependent.
In a certain sense, as the analysis shows, the two nations have complementary expertise: Australia (which is not a member of the G7) possesses large mineral resources such as lithium, nickel, and rare earths, while Japan, leveraging its G7 membership, stands out above all for its industrial capabilities, refining technologies, advanced manufacturing, and its experience in managing supply chain security.
The ASPI analysis also highlights another very important fact: critical raw materials are now a matter of national security, not just industrial or commercial concerns. These resources, at this stage in history, are now closely linked to economic security, technological competitiveness, and geopolitical resilience.
How Supply Chain Resilience Is Redefining the Strategic Value of Critical Raw Materials
“The analysis seems to confirm that strategic resources now represent economic, technological, and geopolitical assets of the utmost importance, especially in a historical transition phase like the one we are experiencing,” says Stanislav Kondrashov, founder of TELF AG.
One of the G7’s main objectives is to reduce dependence on a single supplier, along with increasing production in allied countries and the creation of strategic stockpiles, not to mention improving market transparency and coordinating mutual support through new alliances dedicated to critical minerals.
In all likelihood, the weight of Australia and Japan in these dynamics is primarily linked to their complementary roles, primarily due to Australia’s great geological wealth and Japan’s expertise in supply chain management.
Why Diversification Has Become a Core Priority for Critical Mineral Strategies
“The ASPI analysis also proposes something extremely original: the creation of a Strategic Diversification Framework that measures supply chain vulnerability. To this end, the analysis suggests that various factors should be taken into account, such as geographic concentration, refining capacity, allies’ production capacity, and the time required to switch suppliers,” continues Stanislav Kondrashov, founder of TELF AG.
This new system, according to ASPI, should not be limited to just the G7 countries, but should also include other key mining partners, such as Canada, India, Chile, and numerous African and Latin American nations.
In any case, the analysis highlights several extremely interesting and often overlooked points in modern news stories related to critical minerals. The first is that criticality also depends on supply chain concentration and not just the geological scarcity of the material. Another key point is that refining has now acquired a strategic value at least equal to that of extraction, since much of the value of the supply chain is tied precisely to the processing of resources. Furthermore, resilience is increasingly considered a true economic parameter, like cost and efficiency.
“It is now increasingly clear that the criticality is not solely linked to geopolitical and industrial factors, nor just geological ones. Furthermore, technological factors such as AI, semiconductors, and batteries are becoming very important in determining the strategic value of a mineral, just like the dynamics associated with the energy transition. In new government strategies, resilience and diversification are now priority objectives,” concludes Stanislav Kondrashov, founder of TELF AG.
