Premier Li Qiang toured a Chinese-controlled lithium refiner in Perth on Tuesday, a sign of his country’s vast appetite for Australian “critical minerals” essential to clean energy technologies.
Li ended his four-day fence-mending visit to Australia by stopping in at Tianqi Lithium Energy Australia, a 51-percent Chinese-owned venture comprising a mine for hard rock lithium ore, and a lithium refinery.
Along with at least a dozen other officials, China’s second most powerful man donned a white helmet during a rainy visit to the facility south of Perth in resource-rich Western Australia.
Australia extracts 52 percent of the world’s lithium, the vast majority of it exported as an ore to China for eventual refining and use in batteries, notably in China’s world-dominant electric vehicle industry.
But despite being a huge Australian customer, China’s involvement in the country’s critical mineral industry is sensitive because of its dominance of global supply chains.
Australia has only recently begun refining lithium rather than exporting the ore.
And the government has announced a strategic plan to develop new supply chains with friendly countries for critical minerals such as lithium, nickel and so-called rare earths.
Earlier this year, the government ordered five China-linked shareholders to sell off a combined 10 percent stake in Northern Minerals, a producer of the rare earth dysprosium.
‘National security threats’
Such foreign ownership was against Australia’s “national interests”, Treasurer Jim Chalmers said.
About 99 percent of the world’s dysprosium — used in high-performance magnets — is currently produced in China.
China has invested in critical minerals in Latin America, Africa and Australia over the past 10-20 years, said Marina Zhang, associate professor at the University of Technology Sydney’s Australia-China Relations Institute.
Developing supply chains independent of China is “fine and dandy” but unlikely to be achieved even in the short to medium term, she said.
“We are facing a very time-pressing issue that is fighting against climate change — so that issue should be at the centre of the discourse,” Zhang said.
“But unfortunately the Western allies are taking the approach that China’s dominance across the supply chains of critical minerals is imposing national security threats,” she said.
China’s narrative, however, was that it was investing and making a contribution to sustainability and environmental protection, the analyst said.
The Chinese premier’s agenda included a visit to a private research facility for clean energy-produced “green hydrogen” — touted as a fuel of the future to power heavy-duty items such as trucks and blast furnaces.
‘Kicking your customers’
The research centre in eastern Perth is owned by a renewable energy arm of Australian billionaire Andrew Forrest’s Fortescue metal mining group.
Forrest welcomed the resolution of a diplomatic spat that sparked Chinese trade sanctions against a slew of Australian exports in 2020.
China’s trade measures have recently been largely dismantled.
“Any government of Australia which goes out of its way to annoy its biggest customer is probably going to stop being that customer’s favourite supplier,” Forrest told The Australian in an interview ahead of the visit.
“You can’t run around kicking your customers and still expect to sell a lot of boots.”
Dateline:
Sydney, Australia
Type of Story: News Service
Produced externally by an organization we trust to adhere to high journalistic standards.
Support HKFP | Policies & Ethics | Error/typo? | Contact Us | Newsletter | Transparency & Annual Report | Apps
Help safeguard press freedom & keep HKFP free for all readers by supporting our team
LATEST FROM HKFP
HKFP has an impartial stance, transparent funding, and balanced coverage guided by an Ethics Code and Corrections Policy.
Support press freedom & help us surpass 1,000 monthly Patrons: 100% independent, governed by an ethics code & not-for-profit.
