President Donald Trump and Australian Prime Minister Anthony Albanese signed a critical minerals and rare earths agreement Monday at the White House, unveiling projects worth up to $8.5 billion.
Albanese said $1 billion would be contributed by both countries over the next six months. However, a White House fact sheet cited more than $3 billion in initial investments.
The framework aims to reduce US dependence on China for rare earths, which are essential for weapons, AI chips, robotics, and EVs.
The Export-Import Bank of the US will issue seven letters of interest totaling $2.2 billion, unlocking up to $5 billion in further investment.
Projects include three groups of joint ventures, involving companies like Alcoa, and a Pentagon-backed gallium refinery in Western Australia with 100-metric-ton annual capacity.
One project also involves a US-Australia-Japan partnership.
Trump said, “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 move underscores efforts to counter China amid recent export restrictions and rising trade tensions.