US steers away from China: Trump seals $8.5 bn deal with Australia for rare earth; 'we'll have so much critical minerals'

The United States has turned to Australia in efforts to counter China’s influence over critical minerals. US President Donald Trump and Australian PM Anthony Albanese on Monday, signed a landmark $8.5 billion agreement as they met at the White House. The deal commits both nations to invest $1 billion each over six months in mining and processing projects, and sets a minimum price for critical minerals. A White House statement said the projects will tap deposits worth $53 billion, though it did not specify exact types or locations, according to Reuters. Trump told reporters, “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.”The US Export-Import Bank announced seven letters of interest totalling over $2.2 billion for Australian projects, involving firms such as Arafura Rare Earths, Northern Minerals, Latrobe Magnesium, VHM, RZ Resources, Graphinex, and Sunrise Energy Metals. These minerals are essential for defence systems, aerospace, communications equipment, and next-generation technologies. EXIM said the investments will also help “counter China’s export dominance and ensure Western supply-chain resilience.

”The Pentagon plans to build a gallium refinery in Western Australia after China blocked exports of the metal to the US last December. Critical minerals like rare earths, lithium, and nickel are vital for everything from electric vehicles to military radars, Reuters reported.Trump also expressed support for Australia’s $239 billion AUKUS submarine project. Under the 2023 agreement, Australia will buy US nuclear-powered submarines in 2032 and later develop a new class with Britain.

Trump described remaining issues as “just minor details” and said the project will now proceed “full steam ahead, building.”The rare earths deal includes faster permitting for mines and processing facilities, collaboration on mapping and recycling, and measures to prevent sales of critical mineral assets “on national security grounds,” a clear reference to China’s global mining investments, including the world’s largest cobalt mine in Congo.