Canberra says the new reserve will lock in supply through contracts and selective stockpiles as it courts allies looking for alternatives to concentrated global supply chains.
Australia will prioritise antimony, gallium and rare earth elements as the first materials covered by its Critical Minerals Strategic Reserve, a $1.2 billion plan the Albanese government says will strengthen supply security for the economy and national interest.
The government confirmed the initial list on Monday, ahead of Treasurer Jim Chalmers briefing counterparts and industry in Washington this week, following earlier discussions led by Resources Minister Madeleine King with G7 partners in Toronto late last year.
Rather than relying solely on warehousing material, the reserve is designed to work primarily through commercial arrangements that give buyers a claim on future Australian production.
The government says it will secure rights to output from local mines and processing facilities and then transfer those rights to customers as demand emerges, using tools such as forward contracts and offtake arrangements.
Officials have framed the first three minerals as building blocks for technologies that sit at the intersection of defence capability and the energy transition.
Antimony is used in household and commercial batteries and in equipment such as night vision devices, as well as in flame retardant materials.
Gallium is an ingredient in advanced semiconductors used in radar systems and telecommunications.
Rare earth elements are used to make high performance permanent magnets found in products ranging from MRI machines to fighter jets and wind turbines.
A total of $1 billion will be available for transactions through an expanded $5 billion Critical Minerals Facility which provides government backed loans and equity support for projects.
Another $185 million has been allocated for selective stockpiling where needed and for implementation costs.
Legislation is due this year to give Export Finance Australia additional powers to support the reserve, with the Department of Industry, Science and Resources leading transactions in close partnership with the export credit agency.
Canberra is pitching the move as part of a broader effort by like minded economies to diversify critical mineral supply chains as policymakers respond to geopolitical risk and the dominance of a small number of producers and processors.
The government says it will consult with partners including the United States, Japan, the Republic of Korea, Canada, the United Kingdom and European counterparts on how the reserve can complement their procurement and investment plans.
In the joint announcement, Chalmers argued a reliable buffer would help stabilise critical minerals markets and support trade and investment decisions during global economic uncertainty.
King said the initial focus would add certainty for Australian mining and processing projects and help the sector manage future market disruption.
The government also pointed to its critical minerals framework with the United States, signed in October which it said would support a pipeline of projects across critical minerals and rare earths valued at around $13 billion.
The reserve is expected to be fully operational by the end of 2026, with further detail to be shaped through consultations and the planned legislative changes.
