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Inside the six critical minerals projects driving Australia–Japan cooperation

by | May 6, 2026 | News | 0 comments

Ardea Resources, Lynas Rare Earths and Alcoa are among six Australian critical minerals companies now in the spotlight following the Australia–Japan Joint Statement on Elevated Critical Minerals Cooperation, signed this week in Canberra.

The declaration – positions the six projects as strategically important to diversifying supply chains and strengthening economic security cooperation between the two nations.

At the centre of the announcement is Ardea Resources’ Kalgoorlie Nickel Project – Goongarrie Hub, one of Australia’s largest nickel-cobalt resources and a project increasingly viewed as a cornerstone of future battery and advanced manufacturing supply chains.

Ardea managing director and chief executive officer Andrew Penkethman said the project’s inclusion in the bilateral declaration was a significant endorsement.
Ardea Resources managing director and CEO Andrew Penkethman. Image: Ardea Resources

“The inclusion of the Kalgoorlie Nickel Project – Goongarrie Hub in the Australia–Japan Joint Statement on Elevated Critical Minerals Cooperation is important recognition of the project’s strategic value to both nations,” Penkethman said.

“The Goongarrie Hub hosts one of the largest nickel-cobalt mineral resources and ore reserves in Australia and the developed world. It is well positioned to support resilient, secure and diversified supply chains for critical minerals that underpin advanced manufacturing and battery supply chains.”

The project is being developed through a joint venture between Ardea, Sumitomo Metal Mining and Mitsubishi Corporation, with support from the Japanese Government under its economic security grant program. It has also received non-binding and conditional indications of support from Export Finance Australia (EFA) and the US Export-Import Bank.

Rare earths producer Lynas was another major beneficiary highlighted in the declaration. Backed by Japanese financing since 2011, Lynas recently commenced heavy rare earth production and strengthened its ties with Japanese partners through a new memorandum of understanding with Japan Australia Rare Earths B.V. (JARE).

The agreement establishes cooperation across the rare earths value chain, including mineral exploration, and follows an updated supply arrangement that includes a firm offtake for 5000 tonnes per annum of neodymium-praseodymium (NdPr) through to 2038. The deal also includes a $US110/kg NdPr floor price and provisions for up to 75 per cent of Lynas’ heavy rare earth oxides to be supplied into the Japanese market.

Alcoa’s gallium recovery project in Western Australia was also singled out as part of the declaration, reflecting growing global interest in securing alternative gallium supply chains outside China.

The project is being pursued through a joint development agreement with Japan Australia Gallium Associates (JAGA), a joint venture between Sojitz Corporation and the Japan Organization for Metals and Energy Security (JOGMEC), and is aimed at producing gallium for semiconductors, LEDs and solar cells.

Gallium has become increasingly strategic since China introduced market controls in 2023, with Australia, the US and Japan all identifying the mineral as critical to national security and advanced technology manufacturing. During a visit to Alcoa’s Wagerup alumina refinery, Prime Minister Anthony Albanese described the JAGA project as “game changing” and an example of a “future made in Australia”.

Magnium Australia was also included in the declaration through its proposed magnesium pilot plant in Collie, Western Australia. The company is planning to produce high-purity magnesium using a lower-carbon process aimed at supplying lightweight automotive and aerospace applications. Japanese trading company Hanwa Co. Ltd. and the Japanese Government have both expressed interest in the initiative.

Tivan’s Speewah fluorite project in Western Australia was another project highlighted under the agreement. The project is supported through a joint venture between Sumitomo Corporation and JOGMEC in collaboration with Tivan and is targeting production of acid-grade fluorite for hydrofluoric acid used in semiconductors and electric vehicles. The project has also received a non-binding and conditional Letter of Support from EFA.

The sixth company identified in the declaration was RZ Resources, through its Copi critical minerals project in New South Wales. The mineral sands and rare earths project includes participation from JX Metals Corporation and Marubeni Corporation and is targeting future supply of critical minerals and rare earth elements.

The Australia–Japan declaration comes amid increasing international efforts to reduce reliance on concentrated critical minerals supply chains, particularly as Australia and Japan deepen cooperation across mining, refining and downstream manufacturing. The agreement includes up to $1.3 billion in Australian Government support alongside approximately $370 million in Japanese investments and grants for strategic projects.

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