Australia plans to stockpile minerals crucial for tech
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Australia wants to stockpile minerals crucial for tech, but how much of a bargaining chip are they? Live from the UK, this is the Marketplace Morning Report from the BBC World Service. I'm Sarah Rogers in for Leanna Byrne. Good morning.

First to Australia and those plans to stockpile minerals like lithium, nickel and cobalt, which are vital in everyday technology. The country's Prime Minister made the announcement in a speech in Perth. It will mean we can deal with trade and market disruptions from a position of strength.

because Australia will be able to call on an internationally significant quantity of resources in global demand. Australian Prime Minister Anthony Albanese. With what it all means is the BBC's Katie Silver joining us on Marketplace from Singapore. Hi, Katie. Hi there. So the Australian Prime Minister has said that this is all about putting the country in a position of strength. So how does he do that? What's the plan?

The plan is to basically buy up about just over one billion Australian dollars or three quarters of a billion US dollars of using taxpayers money to basically go into a national reserve of critical minerals and rare earths that it's going to purchase them, own them and then sell them to the domestic industry and so-called like minded nations. Now,

According to the Prime Minister, Anthony Albanese, he said that he's hopeful that the reserve would last for multiple generations. And of course, these are critical minerals that are essential to modern technologies, things like batteries and computer chips. Yes, and smartphones too, of course. So at the moment, where do all these minerals end up?

Well, primarily China. So the majority of Australia's rare earths, and Australia is the fourth largest producer of rare earths, for example, and critical minerals after the likes of China, Brazil and India. Typically, most of them end up in China. They, of course, dominate global processing capabilities.

But with recent geopolitical tensions and, of course, the export restrictions that China has imposed on Australia, Australia has been looking to diversify its export markets. Countries like Japan, the US and the EU are increasingly buying up Australia's rare earths. And so is the idea here that this could sweeten any potential future trade deal with Australia?

upon a like the US? Well, that's definitely part of the hope. We've already seen them become a key bargaining chip in geopolitical affairs. And of course, the US has seen them as something of a national security concern. So it is thought that basically that when we talk about like-minded countries, one of those would be the US and that this reserve would be available to them. Basically,

as part of trying to sweeten the tariff deal and negotiations with the Trump administration. And Australia was given a 10% tariff in the so-called reciprocal tariffs that were announced last month. Now, whether or not this does come to fruition, though, is dependent on what happens in nine days' time when Australia goes to the polls, because we have also heard from the opposition leader, Peter Dutton, that he wouldn't do this plan that has been flagged by the Labour government. Katie Silver, thanks for joining us on Marketplace. Thanks for having me. OK, let's do the numbers.

British fintech firm Revolut announced annual profit of $1.1 billion. The online bank said it more than doubled net profit last year, putting the increase down to crypto trading, interest rate earnings and card fees. And China has sent back planes it ordered from the US, the boss of aircraft maker Boeing has said. The US put 145% tariffs on imports from China. It responded with a 125% tax on US products.

The UK Finance Minister Rachel Reeves is following the US in closing a tax loophole exploited by Chinese retail giants Shein and Timu. Under current rules, products worth less than $180 are exempt from UK import duties, which helps keep prices down.

But British retail bosses have complained to government, saying it's unfair competition. They're also worried President Trump's trade war with China will fuel a surge in cheap imports to the UK. New figures for European electric vehicle sales show a sharp decline for Tesla in the first quarter, despite overall growth.

Elon Musk's company sold 45% fewer cars in the period. Analysts attribute most of the downturn due to customer unease over Mr Musk's relationship with President Trump. The company is also facing fierce competition in China but has no presence at this year's Shanghai Motor Show. The BBC's Stephen McDonald spoke to my colleague Gideon Long from the show.

Notable by their absence, Tesla. No Tesla stand here. And you wonder why they wouldn't if they're going to try to sell into this market, especially when they've got such big problems in China. Not only problems in that their top couple of models, which are made in the US, are now not being sold here because of the tariffs imposed by China in response to the tariffs imposed.

imposed by the Trump administration, but also they're facing a really big challenge from the local brands. All these Chinese brands, just as good as Tesla now, but cheaper. And for Chinese consumers, they've been increasingly looking away from Tesla and towards the homegrown stuff.

And so are US tariffs the dominant theme, the dominant talking point of this car show, or are there other issues at stake? Well, if you're looking on the global stage, of course, there's the big question of European tariffs on Chinese cars. Now, don't forget, Europeans were accusing China of dumping electric cars into the European market.

But what the Chinese companies would like to see and what the Chinese government's been trying to negotiate is the removal of these European tariffs on Chinese cars and replacing that with a minimum price instead to avoid dumping and thereby opening the door again for China to keep selling electric vehicles in significant numbers into the European market. So in the immediate months ahead, that's what the Chinese companies would really like to see. They weren't selling...

into the US market that much anyway so they're kind of looking for other markets I'm sure they'd dearly love to be able to get a slice of the US market at some point in the future but I don't think anyone expects that to happen in a hurry. Stephen McDonald thank you for joining us from the Shanghai Motor Show here on Marketplace. No worries good to talk to you.

And the Magic Circle, which promotes the art of magic in Britain, is welcoming back a woman it kicked out more than 30 years ago. Sophie Lloyd tricked her way into membership by working as a magician dressed as a man. But when the group allowed women to join in 1991 and Miss Lloyd revealed her identity, she was expelled. And so that is the final wave of our Magic Wand here on Marketplace Morning Report.

From the BBC World Service and from the UK, I'm Sarah Rogers. Enjoy the rest of your day. If there's one thing we know about social media, it's that misinformation is everywhere, especially when it comes to personal finance. Financially Inclined from Marketplace is a podcast you can trust to help you get serious about your money so you can build a life you've always dreamed of.

I'm the host, Janelia Espinal, and each week I ask experts important money questions, like how to negotiate job offers, how to choose a college that you can afford, and how to talk about money with friends and family. Listen to Financially Inclined wherever you get your podcasts.