An agreement on rare earths between Australia and the United States was signed yesterday which unlocks an $8.5 billion supply of critical minerals from Australia to the USA, as Australian Prime Minister Anthony Albanese said during his meeting with US President Donald Trump.
Rare earths, US-Australia axis
The agreement includes “three groups of activities”, Albanese further explained: joint activities between Australia and the USA, US investments in Australia which will include refining, and projects with third-party partners such as Japan. The Australian Prime Minister underlined that his government is trying to “seize all the opportunities that exist”.
“We sign an agreement on critical minerals and rare earths with Australia, which has been negotiated for the last 4-5 months”
said Donald Trump in the meeting in the Oval Office with Albanese, adding that duties, submarines and military equipment are also on the agenda. In fact, the agreement signed in the cabinet room allows the US to have more room for maneuver with Beijing, after the Chinese crackdown on the sector. The process for American submarines in Canberra as part of the Aukus agreement, the US-GB-Australia alliance in an anti-Chinese key, “will proceed rapidly”, added Trump.
Three billion dollars in joint investments
In detail, the White House, publishing the information note, reports that the United States and Australia will invest over 3 billion dollars in projects in the strategic minerals sector in the next six months, with an estimated value of “recoverable resources” of 53 billion dollars. This was reported by the White House, publishing the information note on the agreement on critical minerals signed today by US President Donald Trump and Australian Prime Minister Anthony Albanese.
Furthermore, under the agreement, the U.S. Export and Import Bank is issuing seven letters of interest worth a total of $2.2 billion in financing, to unlock up to $5 billion in investments in mineral security projects and in the supply chain between the two countries. Finally, the War Department will invest in the construction of an advanced 100 metric ton per year gallium refinery in Western Australia, with the aim of “promoting self-sufficiency in the processing of essential minerals.”
Also in line with the agreement, Canberra will purchase $1.2 billion worth of Anduril underwater vehicles from Washington.
