Between a Rock and a Hard Place: A Risk Analysis of Australia’s Rare Earth Supply Chain Strategy and its Implications for National Security

Australia’s renewed focus on rare earth elements (REEs) has prompted deep scrutiny of vulnerabilities in its supply chain and national security implications. The study highlights that although Australia hosts significant rare earth deposits, the country remains heavily dependent on foreign processing, particularly in China—which controls a dominant share of global processing capacity. Any disruption to Chinese export or processing logistics—whether due to geopolitical tensions, trade restrictions, or environmental regulation—could critically impact Australia’s ability to supply both domestic manufacturers (e.g., for defense systems and clean-energy technologies) and global allies reliant on its raw material exports.