Key Takeaways
- Strengthening Supply Chains: The U.S. and Australia will jointly invest $8.5 billion to boost mining, refining, and recycling of critical minerals essential for defense, energy, and high-tech manufacturing.
- Countering China’s Control: The deal directly challenges China’s dominance in rare earth production, securing American access to vital resources and stabilizing global supply chains.
- Expanding Economic and Defense Ties: Alongside the minerals deal, Australia committed billions in U.S. defense purchases and investments—deepening economic cooperation and bolstering Western security.
President Donald Trump and Australian Prime Minister Anthony Albanese signed a landmark $8.5 billion critical minerals deal at the White House on Monday, marking a major step in countering China’s global dominance over rare earth production.
The agreement establishes a framework for the U.S. and Australia to jointly invest in mining and processing critical minerals essential for advanced technology, defense, and energy manufacturing. The two nations will each contribute $1 billion in the next six months, with the total value of recoverable resources estimated at $53 billion.
“In about a year from now, we’ll have so much critical mineral and rare earths that you won’t know what to do with them,” Trump said. “This deal unleashes American energy, strengthens our national security, and brings manufacturing back home.”
As part of the deal, both countries agreed to streamline permitting for mines and refineries, establish a price floor for critical minerals, and cooperate on resource mapping and recycling. The U.S. Export-Import Bank will issue over $2.2 billion in financing to support projects advancing supply chain security.
The U.S. Department of War will fund the construction of a gallium refinery in Western Australia to bolster America’s self-reliance in critical minerals processing.
The agreement also deepens defense cooperation, with Australia purchasing $1.2 billion in Anduril unmanned underwater vehicles and $2.6 billion in Apache helicopters. Canberra has committed an additional $2 billion to strengthen missile defense systems and the U.S. submarine industrial base.
Trump framed the agreement as a cornerstone of his broader “energy dominance” agenda — one that leverages American innovation, restores supply chain independence, and promotes fair, reciprocal trade. “For decades, politicians let China control the market,” he said. “Those days are over.”
Together, the U.S. and Australia are forging what Trump called “a new era of prosperity and power built on freedom, not dependency.”