Friendshoring and Mineral Partnerships

Friendshoring - the deliberate strategy of shifting supply chains toward allied and trusted partner nations - has emerged as a central pillar of Western critical minerals policy. Recognizing that China's dominance over mineral processing cannot be broken through domestic production alone, the United States, the European Union, Australia, Canada, Japan, South Korea, and the United Kingdom are building a network of bilateral and multilateral partnerships designed to create diversified, resilient supply chains among geopolitically aligned countries. These partnerships span the full value chain, from mining investment and processing capacity to research collaboration and strategic stockpiling.

Australia–Japan–South Korea: A Model for Deep Cooperation

Australia, as the world's largest producer of lithium and a major source of rare earths, nickel, cobalt, and other critical minerals, occupies a central position in friendshoring strategies. Japan and South Korea, both heavily dependent on imported minerals for their advanced manufacturing sectors, have pursued deep bilateral cooperation with Australia. Japan's Organisation for Metals and Energy Security (JOGMEC) has invested in Australian mining projects and signed long-term offtake agreements for rare earth concentrates from Lynas and lithium from various Western Australian producers.

South Korea's state-backed Korea Mine Rehabilitation and Mineral Resources Corporation (KOMIR) and private companies such as POSCO have invested in Australian lithium and nickel projects. POSCO's lithium hydroxide plant in Gwangyang, South Korea, sources spodumene concentrate from Australian mines, creating a vertically integrated supply chain that bypasses Chinese processing. These bilateral relationships are reinforced by broader diplomatic frameworks, including the Quad (comprising the United States, Japan, Australia, and India) and AUKUS, which increasingly incorporate supply chain security as a component of strategic cooperation.

Canada's Critical Minerals Strategy

Canada has positioned itself as a preferred partner for critical mineral friendshoring, leveraging its abundant mineral resources, stable governance, and close trade relationships with the United States, Europe, and Japan. The Canadian Critical Minerals Strategy, published in December 2022, allocated CAD 3.8 billion in funding to support mining, processing, and recycling projects. Canada's mineral endowment includes significant deposits of lithium, cobalt, nickel, rare earths, graphite, and uranium, making it one of the few countries with the geological potential to contribute across multiple critical mineral supply chains.

Canadian partnerships with the United States are particularly deep, facilitated by the USMCA trade agreement (which qualifies Canadian minerals for IRA benefits), joint regulatory harmonization efforts, and cross-border infrastructure connections. The Joint Action Plan on Critical Minerals Collaboration between the two countries covers supply chain mapping, investment coordination, and joint research on mineral processing technologies.