It’s been a significant month for Australia’s ambitions to become a critical minerals superpower, while balancing its relationships with China and the United States.

Last Monday, Treasurer Jim Chalmers announced he had ordered six investors with links to China to sell off shares in Northern Minerals, an Australian rare-earths company developing the Browns Range project in Western Australia.

Then, on Thursday, mining company Arafura Rare Earths announced its planned Nolans rare earths mine in the Northern Territory would go ahead. This was after the federal government committed to purchase 500 tonnes of rare earths from the project for Australia’s Critical Minerals Strategic Reserve.

Both moves matter. One signals a big shift in how Australia screens foreign investments, moving from vetting transactions one by one to strengthening ongoing surveillance of foreign ownership and influence.

The other shows how Australia, aligned with the US, is moving to build its own critical minerals capability.

But this isn’t without risks. For the US, kicking out Chinese investment is a straightforward win for national security. But Australia also has to work out if it can build and run these expensive projects without Chinese participation.

Key components for EVs, wind and weapons

The Northern Minerals Browns Range project, located in northern Western Australia, is strategically important because it contains heavy rare earths – particularly dysprosium and terbium.

These elements........

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