- U.S. President Donald Trump and Australian Prime Minister Anthony Albanese signed an $8.5 billion critical minerals agreement at the White House on Monday, aimed at reducing U.S. reliance on China.
- Both nations will invest $1 billion each over the next six months in mining and processing projects in Australia. The agreement includes joint U.S.-Australia projects, Australian-only projects, and trilateral projects with Japan.
- The deal aims to counter China’s tightening control over rare earth exports, which are crucial for defense systems, electronics, and electric vehicles. The agreement includes setting price floors for critical minerals to protect against potential Chinese market manipulation.
- Trump reaffirmed U.S. backing for the AUKUS pact, under which Australia will purchase nuclear-powered submarines from the U.S. by 2032 and later co-develop a new submarine class with the UK.
US and Australia Sign Critical Minerals Agreement to Counter China
