Australia will stockpile critical minerals in a new strategic reserve, Prime Minister Anthony Albanese said Thursday, as nations scramble to source rare earths and coveted metals outside China. Mining superpower Australia sits on bulging deposits of lithium, nickel and cobalt — metals used in everything from smartphones to electric vehicles. But most of this boon is sold as raw ore to processing factories in China, which has a chokehold on the global supply of finished critical minerals. Albanese said Australia would start stockpiling these commodities at home, striking deals to sell them to other “key partners”. “Increasingly uncertain times call for a new approach to make sure Australia maximises the strategic value of critical minerals,” he said in a statement.”We need to do more with the natural resources the world needs, and that Australia can provide.”Australia would initially set aside Aus$1.2 billion (US$760 million) to get the reserve up and running. Albanese’s government has previously suggested Australia could use its critical minerals as a bargaining chip in tariff talks with the United States. Australia sits on some of the largest lithium deposits in the world, and is also a leading source of lesser-known rare earth metals such as neodymium.Major manufacturing nations such as the United States, Germany and Japan are eager to obtain these critical minerals from sources other than China. Japan has its own critical minerals stockpile, while the United States has been investing in metals refineries and other processing technology. – Rare earth ransom -“The ability for the government to stockpile is an important safeguard against market pressure, as well as interventions from other nations,” Albanese said in a speech later on Thursday.”It means Australia has the power to sell at the right time to the right partners for the right reasons.”Critical minerals loom as a likely new front in the unfolding trade war between Washington and Beijing. US President Donald Trump last week ordered a probe that could result in new tariffs targeting China.Trump’s order stated that the United States was dependent on foreign sources of critical minerals, putting its military and energy infrastructure at risk.China has shown a willingness to hold rare earths to ransom in the past. At the height of a diplomatic dispute in 2010, China effectively banned the export of rare earths into Japan. The move rattled Japan’s car-making industry, which was heavily reliant on certain rare earth alloys to build magnets used in motors. China controls some 90 percent of the world’s supply of rare earths — a subset of critical minerals — and is fiercely protective of its position. Beijing has banned the export of processing technology that could help rival nations, and has been accused of using state-imposed quotas to control supply. 

South Korea’s economy unexpectedly contracted 0.1 percent in the first three months of this year, the country’s central bank said Thursday, as the Asian export giant reels from months of political chaos and heightened trade tensions. US President Donald Trump’s threatened 25 percent “reciprocal” tariffs on export-dependent South Korea have rattled Asia’s fourth-largest economy, sending Seoul-listed shares tumbling and pushing the currency to its weakest level since 2009. The country is also still emerging from a political crisis triggered by former president Yoon Suk Yeol’s December attempt to suspend civilian rule, which culminated in his impeachment and removal from office this month.”Real gross domestic product (GDP) fell by 0.1 percent compared to the same period last year,” the central bank said, adding that it contracted by 0.2 percent from the previous quarter. “Two developments hit confidence and the economy — fallout from former President Yoon Suk Yeol’s failed martial law attempt and worries about shifts in US trade policies,” said Hyosung Kwon, an economist at Bloomberg Economics. “Looking ahead, we see the economy rebounding in the second quarter of this year, helped by easing political uncertainty at home. But the recovery will likely remain fragile as elevated US tariffs weigh on external demand,” Kwon added.- Dented exports -The country’s economy expanded 1.3 precent in the first quarter of last year but grew less than expected in the fourth quarter, as the fallout from Yoon’s declaration of martial law hit consumer confidence and domestic demand.According to the Korea Customs Service, as of mid-April, the country’s exports had dropped by more than 5 percent compared to the previous year, with declines reported in nine out of the country’s ten major export categories excluding semiconductors. The sharpest fall was in exports to the United States, which plunged by more than 14 percent. The International Monetary Fund this week sharply revised down its growth forecast for South Korea for the year,  cutting it from 2.0 percent to 1.0 percent. “The South Korean economy is facing structural burdens of high inflation and a weak won-dollar exchange rate, and under this dual pressure, a slowdown in growth is becoming increasingly evident,” Kim Dae-jong, a professor at Sejong University, told AFP.Bank of Korea governor Rhee Chang-yong said last week the country’s annual growth rate is now “expected to fall short of the 1.5 percent forecast made in February”.”The tightening of tariff policies, which is much stronger than initially projected, will likely further weigh on growth prospects,” he told reporters in a press conference.He added that “political uncertainty has dragged on longer than expected, delaying the recovery of economic sentiment.” Sluggish domestic demand, along with factors such as large-scale wildfires which tore through swaths of the country’s southeast in late March, had also contributed to the downturn, Rhee said.Addressing parliament, acting president Han Duck-soo underlined “significant” challenges by South Korea.”Unprecedented US-driven tariff policies have created a level of uncertainty that is causing rapid and unpredictable shifts in the global economic landscape,” Han told the National Assembly.US tariffs on steel and automobiles, as well as broader levies imposed by Trump on other goods, are expected to “place considerable strain on Korean industries and businesses,” added Han.