Australia’s lithium sector is emerging as a key beneficiary of accelerating global efforts to diversify critical minerals supply chains away from China.
Speaking at the National Press Club this week, Lynas Rare Earths chief executive officer and managing director Amanda Lacaze said China’s influence spans every stage of the supply chain, from extraction to processing and manufacturing.
“That creates a clear advantage for its economy and downstream industries,” she said.
Lacaze said that position has been reinforced through policy settings designed to support domestic industry, including export controls, licensing regimes and pricing mechanisms that can shape how materials move through global markets.
China’s role in supply chains is now accelerating the push for new suppliers, including established producers such as Australia. That shift is being felt across a range of critical minerals, including lithium, where demand continues to rise alongside the global transition to electrification and renewable energy.
As governments and manufacturers look to diversify supply, attention is increasingly turning to producers outside of China, with Australia emerging as a key alternative source given its resource base and established mining sector.
“Australia has the resources and capability to play a larger role in global supply chains,” Lacaze said.
However, Lacaze said building a competitive supply chain requires more than resource availability, with processing capability, partnerships and long-term investment all playing a critical role.
“Processing is complex and requires sustained commitment to develop capability,” she said.
Lacaze pointed to Lynas’ own experience in rare earth as an example of how Australia can compete globally, particularly through strong international partnerships and continued investment in downstream capability.
As global demand for lithium continues to accelerate, Lacaze said the focus is now on translating Australia’s resource strength into long-term economic value.
“The opportunity is there, but it requires coordinated action across industry and government,” she said.
For Australia, the opportunity is not just to supply lithium, but to play a larger role in a global supply chain that is increasingly looking beyond China.