U.S. President Donald Trump and Australian Prime Minister Anthony Albanese finalized a strategic minerals pact on Monday, aiming to reduce dependence on China. The meeting, dominated by discussions on countering China, also saw Trump supporting a nuclear submarine deal with Australia to enhance security in the Indo-Pacific.
Despite a cordial greeting between Trump and Albanese, the U.S. president expressed discontent over past criticism from Australia’s former Prime Minister and U.S. ambassador Kevin Rudd. The signed minerals agreement, valued at $8.5 billion, was highlighted during the visit, with both leaders emphasizing the significant investment in mining and processing projects over the next six months.
The agreement outlines a joint $2 billion investment by both countries into critical minerals projects, setting a minimum price floor to support Western miners. This initiative aims to secure deposits worth $53 billion of critical minerals, enhancing the global supply chain resilience.
In parallel, the U.S. Export-Import Bank announced investments exceeding $2.2 billion in critical minerals projects in Australia, targeting key minerals essential for advanced defense systems and industrial technologies. These investments are intended to bolster America’s high-tech manufacturing base and counter China’s export dominance.
Additionally, the Pentagon plans to establish a gallium refinery in Western Australia, a move to mitigate China’s export restrictions on gallium. The focus on critical minerals underscores efforts to diversify supply chains and reduce reliance on China, as trade tensions between the U.S. and China escalate.
The rare earths agreement between Trump and Albanese aims to streamline permitting processes for mining operations, enhance production, and prevent the sale of critical mineral assets for national security reasons. This agreement signifies a strategic partnership between the U.S. and Australia to strengthen access to essential minerals and reduce dependency on China, the world’s largest rare earths producer.