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2d ago

U.S. and Australia Seal Critical Minerals Pact With $8.5 Billion Project Pipeline

The framework couples near-term public financing with defense cooperation to diversify supply chains away from China, with long timelines and permitting still ahead.

U.S. President Donald Trump and Australia's Prime Minister Anthony Albanese sign an agreement on rare earth and critical minerals during a meeting in the Cabinet Room at the White House, in Washington, D.C., U.S., October 20, 2025. REUTERS/Kevin Lamarque
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President Donald Trump, right, listens as Australian Prime Minister Anthony Albanese speaks in the Cabinet Room of the White House, Monday, October 20, 2025, in Washington. (AP Photo/Evan Vucci)

Overview

  • Leaders signed a White House framework that targets more than $3 billion in near-term government financing, with each country to commit at least $1 billion within six months.
  • A White House fact sheet cites seven U.S. Export-Import Bank letters of interest totaling about $2.2 billion to catalyze projects under the agreement.
  • Initial targets include a U.S.-backed gallium recovery and refining project in Western Australia that Australia says could supply up to 10% of global gallium.
  • The deal is positioned to reduce exposure to China's dominant refining and processing footprint after new Chinese export controls, as Trump threatens tariffs of up to 100% on Chinese goods.
  • Defense ties featured in the visit, with Australia set to buy more than $1 billion in unmanned underwater vehicles and AUKUS-related cooperation discussed, while experts caution projects will take years to scale.