Landmark $8.5B US-Australia Rare Earth Deal Signed to Offset China’s Dominance
President Trump and Australian Prime Minister Anthony Albanese have signed a landmark $8.5 billion critical minerals agreement at the White House. This significant move is aimed at reducing dependence on China’s dominance in rare earth supplies.
The deal includes joint investments of over $3 billion in mining projects within six months, with the Pentagon funding a 100-metric-ton gallium refinery in Western Australia. The agreement comes as China tightened export controls on rare earth elements, leading to global supply chain disruptions.
China currently controls over 90% of refined rare earth production, essential for a wide range of products from smartphones to electric vehicles and defense systems. Australia, boasting the world’s fourth-largest rare earth deposits, will serve as a key alternative supplier for the US market.
“In about a year from now, we’ll have so much critical mineral and rare earth that you won’t know what to do with them,” Trump declared during the signing ceremony.
The Export-Import Bank is providing letters of interest for over $2.2 billion in additional financing. Following the announcement, Australian rare earth stocks surged, with Lynas Rare Earths jumping 14% and Australian Strategic Materials rallying 24%.
Source: CNBC