Overview
- President Donald Trump and Prime Minister Anthony Albanese signed the cooperation at the White House, launching projects worth $8.5 billion, with a planned U.S. Defense Department investment in a large gallium refinery in Australia and an estimated $53 billion in recoverable minerals.
- Beijing’s early‑October measures (Announcements No. 56–62) require export licenses for goods containing Chinese‑processed rare earths and effectively prohibit supplies for military uses.
- China controls roughly 70 percent of mining and about 85–99 percent of processing and magnet production, cementing a dependency that exposes Western industries to supply shocks.
- Automotive and defense manufacturers report tightening supplies and steep price increases and warn of possible production stoppages, while rare‑earth‑linked stocks have fallen sharply.
- U.S. officials and G7 partners are discussing a joint response, with Treasury Secretary Scott Bessent saying Washington will not negotiate based on short‑term market moves.