Australian Treasurer Jim Chalmers has ordered the sale of stakes in six China-linked companies in Northern Minerals, a firm that operates a rare earths deposit in Western Australia. The measure, which requires divestment within 14 days, responds to fears of foreign control that would affect national interest. The mine produces dysprosium and terbium, essential for magnets in clean energy and defense.
Dysprosium and terbium: the technological Achilles' heel 🧲
These elements are critical for manufacturing high-performance magnets in electric vehicle motors and wind turbines. China controls almost the entire global market for processed dysprosium. Australia seeks to become the first significant non-Chinese source of this mineral. Chalmers' decision aims to prevent foreign interests from controlling strategic resources for the energy transition and Western defense.
China misses out on its dose of Australian rare earths 😏
It seems Beijing will have to find another supplier of dysprosium, because Australia has decided not to share its mining toys. The order to sell within two weeks sounds more like a divorce ultimatum than a commercial transaction. Meanwhile, Chalmers rubs his hands together thinking about how to explain this at the next G20 dinner without being served cold dumplings.