WASHINGTON: In a move aimed at securing a steady supply of rare earths and critical minerals, US President Donald Trump and Australian Prime Minister Anthony Albanese signed a landmark agreement on Monday at the White House. The deal comes amid growing concerns over China’s tightening control of global supply chains for these strategic materials.
The agreement, negotiated over four to five months, will create an $8.5 billion pipeline to ensure the reliable extraction, processing, and trade of critical minerals. Prime Minister Albanese described the deal as a joint effort, with both countries contributing $1 billion over the next six months to fund collaborative projects. While the full terms of the pact have not been disclosed, officials confirmed it includes provisions for mineral processing and shared strategic reserves.
The United States has been actively seeking access to rare earths and critical minerals worldwide as China, which holds the largest global reserves according to the US Geological Survey, increasingly restricts exports. Australia, rich in similar resources, is positioned as a key alternative supplier for the US and its allies.
Link to AUKUS and Defence Cooperation
The summit also provided a platform for discussions on the $239.46 billion AUKUS defence agreement, initially reached in 2023 under former President Joe Biden. Under this agreement, Australia is set to acquire US nuclear-powered submarines by 2032 and later co-develop a new submarine class with Britain.
Navy Secretary John Phelan emphasized that the US and Australia are collaborating to refine the original AUKUS framework, addressing ambiguities from the prior agreement. President Trump described the adjustments as minor, saying the initiative is moving “full steam ahead.” Australian officials have expressed confidence that AUKUS will proceed, with Defence Minister Richard Marles confirming the ongoing review and Australia’s financial contributions toward the initiative.
Strengthening Bilateral Ties
Ahead of the summit, Australian officials highlighted Canberra’s commitment under AUKUS, including a $2 billion investment this year to accelerate production at US submarine shipyards and plans to maintain US Virginia-class submarines at Australia’s Indian Ocean naval base from 2027. The resumption of high-level talks between Trump and Albanese, following a 10-month gap, underscores the cooperative and warm nature of the US-Australia relationship.
Strategic Minerals and Global Supply Security
Australia has also offered preferential access to its planned strategic reserve of critical minerals to allied nations, including Britain, in an effort to reduce Western dependence on China. These materials are crucial for a wide range of industries, from electric vehicles and aircraft engines to military radars. US officials have condemned China’s export restrictions on rare earths as a threat to global supply chains.
Australia, historically reliant on China for exports like iron ore and coal, has been diversifying its trade portfolio in recent years. The new US-Australia agreement signals a significant shift toward strengthening strategic autonomy in critical mineral supply while bolstering defence cooperation under AUKUS.
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