The deal represents an “$8.5 billion pipeline,” the Australian Prime Minister said.
The United States and Australia agreed on a framework to strengthen supply chains for critical minerals. The deal, signed Monday at the White House by U.S. President Donald Trump and Australian Prime Minister Anthony Albanese, sets up the two governments to partner with the private sector to mobilize financial and regulatory support through guarantees, loans, equity, insurance, and fast-tracked permitting. Albanese said the agreement represents an $8.5 billion pipeline of investment-ready projects.
The framework commits both countries to mobilize more than $1 billion each in financing within six months to expand mining and processing capacity in their territories. Two projects have already been selected for immediate investment by the Australian government: Australian mining company Arafura Rare Earths will receive $100 million to advance its Nolans rare earth project; and U.S.-based aluminum producer Alcoa will receive $200 million to develop a gallium refinery in Western Australia in partnership with Japan’s Sojitz Corporation.
To safeguard national interests, the framework introduces new tools to review and block foreign acquisitions of strategic mineral assets. It also includes commitments to develop recycling technologies to reduce reliance on raw extraction.
U.S. Seeks to Diversify; Australia Positions Itself as Alternative to China
“This agreement underscores the depth of the U.S.–Australia alliance and our shared commitment to securing the critical minerals that will power the industries of the future,” Albanese said.
The framework agreement comes as the United States seeks to diversify its supply chains away from China, the world’s largest producer of critical minerals. Australia, meanwhile, aims to position itself as a reliable alternative supplier, drawing on its abundance of raw materials, including the world’s fourth-largest rare earth reserve. The deal follows China’s recent move to tighten its rare earth export rules, adding urgency to global efforts to build more secure and diversified supply chains.
Photo: iStock/Oleksii Liskonih