An Australia-Canada resource alliance: Why it matters for Western Australia

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Western Australia sits at the heart of a global contest over the raw materials which power modern life. From lithium for batteries to iron ore and rare earths, WA’s mines and ports are not just local assets — they are strategic levers in a world where supply chains are increasingly weaponised.

Australia has a major opportunity in this space, one that could be amplified by working alongside Canada.  

Canada and Australia are natural partners: like‑minded, resource‑rich democracies with complementary strengths. Together, they can offer reliable alternatives to markets dominated by state‑directed competitors, and in doing so underpin new investment and long‑term project viability. This is not about cartelising supply. An Australia-Canada resource alliance would not be about replicating OPEC for critical minerals and restricting supply.

What would a practical alliance look like? First, it should operationalise the Joint Declaration of Intent on Critical Minerals Cooperation already agreed by Ottawa and Canberra. This includes blended financing for early‑stage projects, joint R&D into processing and recycling, and shared standards and traceability. WA’s junior mining sector and its world‑class geology would benefit from coordinated export finance and offtake arrangements that reduce project risk and attract downstream investment.

Second, the alliance should build real operational tools: joint supply‑chain monitoring to spot chokepoints, shared reference prices to reduce volatility, and buffer mechanisms — from strategic stockpiles to contracts‑for‑difference — that preserve surge capacity without distorting markets. These measures would blunt the impact of sudden export bans or punitive pricing tactics that have hit Australian producers in recent years.

Third, the partnership must leverage market institutions rather than replace them. Australia’s ASX and Canada’s TSX are global hubs for mining finance; coordinated efforts to mobilise capital for processing and refining facilities — ideally located in friendly jurisdictions — would keep value‑adding jobs onshore or in trusted partner countries.

Critics will warn against politicising trade. The point here is the opposite: to depoliticise supply by creating predictable, rules‑based alternatives that reduce the temptation for coercion. In a world where economic pressure is a tool of statecraft, WA’s prosperity depends on partners who can stand with us to defend and promote open markets.

There are already many forums which Australia and Canada attend. Too often this is on the sidelines of other larger meetings. The launch of the US-led Project Vault in early February in Washington was one such example. Certainly, it is essential to continue with Western initiatives. From Project Vault in critical minerals, or AUKUS and the Quad from a security perspective, working with like-minded countries is important. However, this should not limit direct and deeper Australian-Canadian collaboration.

The March 2026 visit by Canadian Prime Minister Mark Carney to Australia provides a focal point to advance an Australia-Canada resource alliance. It is time to elevate the relationship beyond familiar tropes of ski lifts at Whistler and backpackers at the beach, into the halls of power.

Learn more about how Canada and Australia can strengthen their geopolitical influence by coordinating resource policies in this report, Global Good, Global Goods: Envisioning a CAN-AUS Resource Alliance, written by Heather Exner-Pirot, Andrew Pickfrod, and Wolfgang Alschner.