The United States and Australia have signed a strategic rare earths and critical minerals agreement, marking a major step in efforts by the Trump administration to counter China’s dominance in the global supply chain.
The deal, signed at the White House by President Donald Trump and Australian Prime Minister Anthony Albanese, aims to boost supplies of essential materials used in defense systems, semiconductors, and electric vehicles.
According to the framework document, the partnership includes $1 billion in joint investments to be deployed across the US and Australia within the next six months, as part of a broader $8.5 billion pipeline of “ready-to-go” mining and processing projects.
“This agreement takes our cooperation on critical minerals to the next level,” said Prime Minister Albanese, emphasizing that it will accelerate investment in both countries’ mining and processing sectors.
Countering China’s Strategic Advantage
China currently controls around 70% of global rare earth mining and 90% of processing capacity — making Western economies highly dependent on Chinese exports.
Recent Chinese restrictions on exports, imposed in response to new US tariffs, have further heightened concerns over supply chain security.
To address this, the US-Australia agreement focuses on:
- Expanding processing capacity in Australia,
- Establishing new refineries and facilities in the US, and
- Coordinating regulatory frameworks on pricing, permitting, and foreign investment reviews.
The US also announced plans to build a new advanced gallium refinery in Western Australia, capable of producing 100 tonnes annually, and to offer $2.2 billion in financing through the US Export-Import Bank to accelerate additional critical mineral projects.
Strengthening Economic and Security Ties
This latest accord builds on years of bilateral cooperation that began during Trump’s first term, with Washington already investing in companies such as MP Materials, Trilogy Metals, and Lithium Americas. In exchange for its financial backing, the US has received equity stakes in several firms.
Investor confidence surged ahead of the announcement — shares in Lynas Rare Earths, an Australian firm with a US Defense Department contract, jumped amid expectations of expanded government support. Lynas is currently developing a major processing facility in Texas.
Although the White House framework released Monday offered limited specifics, it underscored a shared strategic goal: to reduce dependence on China and secure long-term access to critical raw materials vital to advanced manufacturing and national security.
