In a major move to counter China’s mineral dominance, President Trump and PM Albanese ink a landmark $8.5 billion deal on critical minerals and rare earths, ensuring US supply for defence and tech.
President Donald Trump and Australian Prime Minister Anthony Albanese yesterday signed a landmark bilateral framework on critical minerals and rare earths at the White House, locking in an $8.5 billion pipeline of projects designed to secure Western supply chains and directly challenge China’s chokehold on the global market.
The “United States–Australia Framework for Securing of Supply” was hailed by both leaders as a major strategic victory, accelerating joint investments and fast-tracking mining and processing projects for minerals vital to defence technology, electric vehicles, and high-tech manufacturing.
The China Factor
The deal comes just weeks after Beijing imposed sweeping new export controls on rare earth magnets, a move the Trump administration views as an economic weapon against the US and its allies.
“This agreement is about standing up to economic bullying and ensuring America’s future technology is not reliant on our global rival,” President Trump stated, adding that in a year, the US would have an abundance of rare earth materials.
Prime Minister Albanese underscored the urgency, stating the deal will “take our relationship to the next level” and position Australia, which holds vast reserves of the critical elements, as a “reliable alternative” supplier.
Billions in the Pipeline
Under the new framework, the two nations have committed to jointly invest at least $1 billion over the next six months to immediately fund priority projects, part of a greater $8.5 billion industry pipeline.
Key Australian projects, including the Alcoa-Sojitz Gallium Recovery Project in Western Australia and the Arafura Nolans project in the Northern Territory, are slated for acceleration, with the US Export-Import Bank announcing over $2.2 billion in potential financing.
The agreement also includes a crucial provision to establish price floors for critical minerals, a long-sought safeguard for Western miners.
While the minerals deal dominated the conversation, President Trump also offered a full endorsement of the AUKUS nuclear submarine pact, signalling he intends to expedite the controversial program after months of internal review. Both agreements reinforce the deep military and economic alliance at a time of rising Indo-Pacific tension.
