WASHINGTON, Oct 21: United States President Donald Trump and Australian Prime Minister Anthony Albanese have reached an agreement on rare earth and critical minerals as China tightens its control over global supply chains. The deal was signed at the White House on Monday, marking a new phase in cooperation between the two countries amid growing concerns over Beijing’s dominance in the sector, according to Al Jazeera.
Trump said the agreement had been under discussion for nearly five months, adding that he and Albanese would also address issues related to trade, submarines, and military equipment, Al Jazeera reported. Albanese called it an $8.5 billion project “ready to go,” highlighting both governments’ readiness to move ahead.
A copy of the deal provided by the Australian Prime Minister’s Office shows that both countries will invest $1 billion each over the next six months in mining and processing ventures. The two sides also agreed to introduce a price floor for critical minerals to stabilize global markets, as reported by Al Jazeera.
Infographics: China may weaponise rare earths in trade war with...
The two leaders also reviewed the $239.4 billion submarine agreement signed in 2023 under former US President Joe Biden, under which Australia is expected to buy US-built nuclear-powered submarines by 2032 before jointly developing a new class with Britain. According to Al Jazeera, US Navy Secretary John Phelan said both sides were working closely to refine the earlier framework and clear up previous ambiguities. Trump dismissed those concerns as “minor details,” saying construction would now proceed “full steam ahead.”
Australian Defence Minister Richard Marles said last week that the review of the submarine project was on schedule and that Canberra was confident of its continuation. The 10-month delay in holding an official meeting since Trump took office had caused unease in Australia, particularly as Washington urged higher defence spending, Al Jazeera noted. The two leaders had briefly met on the sidelines of the UN General Assembly in New York last month.
Before the meeting, Australian officials emphasized that Canberra is contributing its fair share under the AUKUS security partnership with the US and the UK, paying $2 billion this year to expand production at American submarine shipyards. Australia also plans to begin servicing US Virginia-class submarines at its Indian Ocean naval base by 2027, according to Al Jazeera.
Australia has also indicated its willingness to sell shares in its planned strategic reserve of critical minerals to friendly nations such as Britain. The move comes as Western governments seek to reduce reliance on China for rare earths and metals vital for electric vehicles, aircraft engines, and military technologies. Senior US officials last week criticized Beijing’s tightened export controls on rare earths, calling them a threat to global supply chains, Al Jazeera reported.
As a resource-rich country, Australia has positioned itself as a dependable alternative supplier. It proposed giving preferential access to its strategic mineral reserve during trade talks with Washington in April, reinforcing its goal of deepening cooperation with Western partners in securing essential materials, according to Al Jazeera.
