Companies involved in critical minerals in Australia and the U.S. will have an easier time gaining government support from either country thanks to the new Single Point of Entry, an initiative launched by Export Finance Australia (EFA) and the Export-Import Bank of the United States (U.S. EXIM).
“The single point of entry means that Australian and U.S. critical minerals businesses may now approach U.S. EXIM or EFA and receive streamlined access to both agencies’ financing support,” said Reta Jo Lewis, President and Chair of the U.S. EXIM Board of Directors, in the Aug. 29 announcement of the launch of the initiative.
The agreement is designed to help the Australian critical minerals industry shift away from the control of China, which currently dominates global supply of critical minerals.
In Australia, China has been the main customer for raw minerals for years, according to experts of the Royal United Services Institute. This has helped China build its global dominance in raw materials for green technology and electric vehicle production—a dominance strengthened through other partnerships, including with many African countries.
U.S. seeking to counter China
The U.S. has been seeking to weaken China’s grip on critical minerals. U.S. efforts to diversify critical minerals supply chains include legislative efforts such as the American Mineral Security Act and the Inflation Reduction Act.
Australia has emerged as a key partner in U.S. efforts in this area, and this new agreement can help drive public-private partnerships in critical minerals.
Single Point of Entry support “can include joint feedback on proposals, joint Letters of Support or Interest and clear advice on how to engage with EFA and U.S. EXIM,” said EFA CEO John Hopkins.
The initiative is part of a broader effort by the Biden administration to “friend-shore” supply chains by working with like-minded nations, including Australia, to reduce reliance on Chinese-controlled mineral processing.
While Australian officials are seeking to loosen China’s grip on their economy for geopolitical reasons, there are economic issues to consider. West Australian Deputy Premier Roger Cook has warned that distancing too much from China could harm Australia’s mineral sector, as finding alternative markets for processing may take years.
