United States President Donald Trump and Australian Prime Minister Anthony Albanese have signed an agreement on rare earth and critical minerals as China tightens control over global supply.
The two leaders signed the deal on Monday at the White House.
Trump said the agreement had been negotiated over four or five months. The two leaders will also discuss trade, submarines and military equipment, Trump said.
Albanese described it as an $8.5bn pipeline “that we have ready to go”.
The full terms of the agreement were not immediately available. The two leaders said part of the agreement had to do with processing of the minerals. Albanese said both countries will contribute $1bn over the next six months for joint projects.
China has the world’s largest rare earths reserves, according to the US Geological Survey data, but Australia also has significant reserves.
The two leaders also planned to discuss the $239.4bn agreement, reached in 2023 under then-US President Joe Biden, in which Australia is to buy US nuclear-powered submarines in 2032 before building a new submarine class with Britain.
US Navy Secretary John Phelan told the meeting the US and Australia were working very closely to improve the original framework for all three parties “and clarify some of the ambiguity that was in the prior agreement”.
Trump said these were “just minor details”.
“There shouldn’t be any more clarifications, because we’re just, we’re just going now full steam ahead, building,” Trump said.
Australian officials have said they are confident it will proceed, with Defence Minister Richard Marles last week saying he knew when the review would conclude.
China’s rare earth export controls
Ahead of Monday’s meeting between the two leaders, Australian officials have emphasised Canberra is paying its way under AUKUS — a trilateral military partnership between the US, Australia and the United Kingdom, contributing $2bn this year to boost production rates at US submarine shipyards, and preparing to maintain US Virginia-class submarines at its Indian Ocean naval base from 2027.
The delay of 10 months in an official meeting since Trump took office has caused some anxiety in Australia as the Pentagon urged Canberra to lift defence spending. The two leaders met briefly on the sidelines of the United Nations General Assembly in New York last month.
Australia is willing to sell shares in its planned strategic reserve of critical minerals to allies including Britain, as Western governments scramble to end their reliance on China for rare earths and minor metals.
Top US officials last week condemned Beijing’s expansion of rare earth export controls as a threat to global supply chains. China is the world’s biggest producer of the materials, which are vital for products ranging from electric vehicles to aircraft engines and military radars.
Resource-rich Australia, wanting to extract and process rare earths, put preferential access to its strategic reserve on the table in US trade negotiations in April.
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