United States President Donald Trump and Australian Prime Minister Anthony Albanese have signed a landmark agreement to secure supplies of rare earths and critical minerals as Beijing tightens its hold on the global market.
The deal, finalised Monday at the White House, outlines an $8.5bn investment pipeline aimed at developing and processing essential minerals used in advanced manufacturing, defense, and green energy.
“It’s been negotiated over four or five months,” Trump said, adding that the leaders would also discuss “trade, submarines, and military equipment.”
Albanese described the initiative as “a pipeline that we have ready to go,” noting that both countries would invest $1bn each within six months into mining and processing projects. The agreement also sets a minimum price floor for critical minerals, a long-sought measure by Western miners to protect against market manipulation.
According to US Geological Survey data, China dominates global reserves and processing capacity, while Australia holds the world’s second-largest reserves. The pact underscores growing Western efforts to diversify away from Beijing’s supply chains.
Trump and Albanese also discussed the $239.4bn AUKUS submarine deal, first signed under President Biden, under which Australia is set to acquire US nuclear-powered submarines before developing a new class with Britain.
US Navy Secretary John Phelan said the allies were working to “clarify some of the ambiguity” in the earlier framework. Trump brushed off concerns, saying:
“There shouldn’t be any more clarifications … we’re going full steam ahead.”
Canberra has faced pressure from Washington to boost defense spending and accelerate cooperation under AUKUS. Australian Defence Minister Richard Marles recently confirmed that progress reviews were nearing completion.
Australia, seeking to deepen supply-chain partnerships, has offered allied nations preferential access to its upcoming strategic reserve of critical minerals.
The move follows China’s expansion of rare earth export controls, which Washington and its allies have condemned as a threat to global supply chains. The materials are vital to technologies ranging from electric vehicles to military radar systems.
“Resource-rich Australia is positioning itself as a cornerstone of a Western alternative to Chinese dominance,” one Canberra trade official said on background.
The latest news in your social feeds
Subscribe to our social media platforms to stay tuned