The United States and Australia have signed a Climate, Critical minerals, and Clean Energy Compact which will enable enhanced cooperation within the two countries and make Australia only the second country after Canada to be considered a “domestic source” under the US Defense Production Act. Australia has significant deposits and active mines producing many of the minerals required for an effective energy transition, lithium, nickel, and cobalt for high-nickel cathode batteries. Rare-earth metals for permanent magnets used in electric vehicle motors and in other applications. Use of Australia’s mineral reserves as a means to accelerate the shift towards electrification, particularly servicing US markets, was increasingly on the table after the passing of the IRA. The agreement will create ministerial taskforces…