The United States and Australia have signed an agreement aimed at increasing supplies of rare earths and other critical minerals, as the Trump administration seeks to counter China’s dominance of the global market. Australian Prime Minister Anthony Albanese said the deal would support a pipeline of $8.5 billion-$13 billion Australian-in “ready-to-go” projects designed to expand Australia’s mining and processing capabilities. According to a framework released Monday, the two countries plan to invest $1 billion in projects in both nations over the next six months.
The U.S. and Australia have collaborated on critical minerals since Trump’s first term, but Albanese said the latest agreement would take the partnership to “the next level.” Trump also commented on Australia’s multibillion-dollar submarine pact with the United States and United Kingdom, known as AUKUS, saying it was “full steam ahead.” Earlier this year, the administration said it would review the deal to ensure it aligns with its “America First” policy, raising concerns that Australia might not be able to purchase U.S. submarines to replace its aging fleet. When asked if Australia would receive the submarines, Trump said, “Oh no, they’re getting them.”
China currently controls about 70 percent of rare earth mining and 90 percent of processing — materials used in everything from defense equipment to computer chips and electric vehicles. U.S. companies rely heavily on these materials, leaving them vulnerable as China tightens export controls in response to new U.S. tariffs and trade tensions.
Shares in Australian rare earth miners rose sharply Tuesday following the announcement. Perth-based Arafura Rare Earths jumped 7.7 percent, while Iluka Resources gained more than 3 percent. Albanese said the deal aims to accelerate investment in three types of projects, including U.S.-backed processing facilities in Australia. The two nations also agreed to cooperate on pricing, permitting, and regulatory reviews involving sales and ownership in the sector. Separately, the U.S. announced plans to fund construction of a 100-ton-per-year advanced gallium refinery in Western Australia and provide about $2.2 billion in financing through the Export-Import Bank to support critical minerals projects.
In recent months, the Trump administration has invested in companies such as U.S.-based MP Materials and Canada’s Trilogy Metals and Lithium Americas, which have projects in the United States. In return, the government has received ownership stakes in those firms. Ahead of the meeting, shares in Australian producers including Lynas Rare Earths climbed on expectations of increased U.S. support. Lynas, which previously received a U.S. Department of Defense contract, is developing a project in Texas. The framework released by the White House offered few details, underscoring the sensitivity of the issue. Australia is a key supplier of critical minerals but, like the United States, depends on China — its largest trading partner — for much of the processing that turns raw materials into usable products.