Andrew Willcox (Dawson, Liberal National Party, Shadow Assistant Minister for Manufacturing and Sovereign Capability) Share this | Hansard source

We've all seen the headlines—a new critical minerals deal with the United States celebrated as a triumph for democracy. But the truth is it's a geopolitical token gesture, leaving Australia dangerously exposed and underinvested in. We're being asked to cheer a handshake when what we need is a manufacturing revolution on our own soil, turning our raw minerals into value added products and keeping the profits and the jobs here at home.

Australia is still a quarry for China, not a manufacturer for the world despite being one of the top producers of critical minerals—lithium, nickel and rare earths. More than 90 per cent of our lithium is exported overseas, mostly to China, where it is refined and turned into products that we buy back at many times the cost. For 19 out of 20 strategic minerals, China dominates refining, controlling around 70 per cent of the global market. That is not just a trade issue; it is strategic vulnerability.

The deal with the US is a strategic band-aid designed to secure their supply chain, not to transform our industry. The real profits, high-skilled jobs, intellectual property and economic security that come from processing and manufacturing are still flowing out of this country. Without a plan to process minerals in Australia, we are locked into a low-value end of the supply chain. Even if we wanted to build these facilities, the reality is harsh. Our energy costs are crushing our competitiveness—once our advantage, now a crippling burden.

Industrial electricity in Australia costs up to twice as much as in Canada and the USA, making it almost impossible for local refineries and manufacturers to complete globally. The difference is not minor. It represents tens of millions of dollars in extra costs every year for energy-intensive operations like refineries, costs that make local processing economically unviable. Until the government delivers affordable, reliable and stable power, any plan for a domestic processing industry is nothing more than an economic fantasy.

Let's be clear: the United States needed this deal far more than Australia did. Their defence and clean energy industries are vulnerable because of China's chokehold. Australia had the US over a barrel. We held the leverage, a chance to negotiate tariff reductions for our steel, aluminium and other value-added exports, a chance to demand real investment in our industries, a chance to secure a genuine economic partnership. But what did we get? A handshake and a photo opportunity. The opportunity was squandered because this government prioritise headlines over substance, because the Prime Minister was too worried about negative press over his rocky relationship with President Trump. This was not diplomacy; it was capitulation disguised as achievement. This government could have turned our resources into a bargaining chip; instead, they handed it away with a thank you.

The minerals under our feet should be our prosperity, not someone else's economy. Without a cheap, reliable and clear plan for onshore processing, Australia will remain dependent on China and will continue exporting our resources and lose our manufacturing base. We need affordable firm baseload power, clean coal and gas, and nuclear must be on the table. Without it, investment will go offshore. We need real investment in incentives for domestic processing and smelting so Australian miners can complete on the global stage. We need a focus on value adding here in Australia, not exporting our jobs, our profits and our knowledge to other countries.

The Albanese government's mismanagement, collapsing manufacturers, energy instability and anti-investment policies are driving opportunities away from our soil. This government spends billions chasing net zero targets while our industries collapse under high power prices and regulation. That is ideological vanity, not leadership. We cannot dig our way to prosperity if we can't power it. It requires bold leadership, investment, certainty and domestic manufacturing. We deserve more than a handshake; we deserve a mining and manufacturing revolution. Australia must capture the value of our minerals to create high-skilled jobs and to secure a sovereign and prosperous future.

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