Washington DC: The United States and Australia have signed a landmark agreement to boost supplies of rare earths and other critical minerals, in a move aimed at reducing reliance on China and strengthening supply chain security for both nations.
Australian Prime Minister Anthony Albanese said the deal would help fast-track a pipeline of $8.5 billion (A$13 billion) in ‘ready-to-go’ projects to expand Australia’s mining and processing capacity. According to a framework text released by the White House, $1 billion will be jointly invested by the two countries over the next six months in projects located across the US and Australia.
For decades, Australia’s alliance with the United States has supported security and prosperity.
Our partnership is strong. And I’m here in Washington D.C. with President Trump building on it for the future.
Today we’ve announced we’ll make more things together – using… pic.twitter.com/VJFxFEVLoo
— Anthony Albanese (@AlboMP) October 20, 2025
Albanese said the new pact would boost the partnership to the next level, building on cooperation that began during Donald Trump’s first term. The agreement was signed at the White House, where President Donald Trump and Prime Minister Albanese reaffirmed their commitment to deepening strategic and economic ties.
Trump also reiterated his support for Australia’s Aukus submarine deal with the US and UK, saying it was full steam ahead. The announcement followed earlier concerns over whether the pact aligned with the Trump administration’s ‘America First’ policy.
China currently dominates about 70 percent of rare earths mining and 90 percent of processing worldwide, giving it a powerful grip over materials vital to industries such as defense, electronics, and electric vehicles. The new US–Australia initiative aims to counter that control by ramping up investment in mining, refining, and supply chain infrastructure.
As part of the deal, Washington will support the construction of a 100-tonne-per-year advanced gallium refinery in Western Australia and provide $2.2 billion in financing for critical minerals projects through the US Export-Import Bank.
The US has also been acquiring ownership stakes in North American mining firms like MP Materials, Trilogy Metals, and Lithium Americas, signaling a broader strategy to secure domestic sources of critical materials.
The announcement sparked a rally on the Australian stock market, with Arafura Rare Earths shares jumping 7.7 percent and Iluka Resources rising more than 3 percent. Lynas Rare Earths, which has existing contracts with the US Defense Department, also saw gains amid optimism over future US-backed projects.
Both governments said they would work together on key issues including pricing, permitting, and foreign investment rules to accelerate project timelines and ensure transparent industry standards.
The White House described the framework as a strategic step toward resilient and sustainable mineral supply chains, underscoring the nations’ shared goal of reducing dependence on China while supporting global energy transition efforts.
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