US and Australia signal uncommon earths deal to counter China's dominance

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The US and Australia have signed a deal supposed to spice up provides of uncommon earths and different vital minerals, because the Trump administration appears for methods to counter China's dominance of the market.

Australian Prime Minister Anthony Albanese mentioned the deal would help a pipeline of $8.5bn (A$13bn; £6.3bn) "ready-to-go" tasks that may increase his nation's mining and processing talents.

It consists of $1bn to be invested by the 2 nations in tasks within the US and Australia over the subsequent six months, a framework textual content says.

The US and Australia have been engaged on these points since Trump's first time period, however Albanese mentioned the newest settlement would take the partnership to the "subsequent stage".

<img sizes="(min-width: 1280px) 50vw, (min-width: 1008px) 66vw, 96vw" srcset="https://ichef.bbci.co.uk/news/240/cpsprodpb/f70e/live/b4cedae0-add5-11f0-be67-e5f02edf63b3.jpg.webp 240w,https://ichef.bbci.co.uk/news/320/cpsprodpb/f70e/live/b4cedae0-add5-11f0-be67-e5f02edf63b3.jpg.webp 320w,https://ichef.bbci.co.uk/news/480/cpsprodpb/f70e/live/b4cedae0-add5-11f0-be67-e5f02edf63b3.jpg.webp 480w,https://ichef.bbci.co.uk/news/640/cpsprodpb/f70e/live/b4cedae0-add5-11f0-be67-e5f02edf63b3.jpg.webp 640w,https://ichef.bbci.co.uk/news/800/cpsprodpb/f70e/live/b4cedae0-add5-11f0-be67-e5f02edf63b3.jpg.webp 800w,https://ichef.bbci.co.uk/news/1024/cpsprodpb/f70e/live/b4cedae0-add5-11f0-be67-e5f02edf63b3.jpg.webp 1024w,https://ichef.bbci.co.uk/news/1536/cpsprodpb/f70e/live/b4cedae0-add5-11f0-be67-e5f02edf63b3.jpg.webp 1536w" src="https://ichef.bbci.co.uk/news/480/cpsprodpb/f70e/live/b4cedae0-add5-11f0-be67-e5f02edf63b3.jpg.webp" loading="eager" alt="AFP via Getty Images US President Donald Trump and Australia's Prime Minister Anthony Albanese shake hands after signing a document on critical minerals at the White House in Washington, DC, on 20 October, 2025" class="sc-5340b511-0 bGQwLJ"/> AFP by way of Getty Pictures On Monday, US President Donald Trump additionally commented on Australia's multi-billion greenback submarine take care of the US and UK, referred to as Aukus, saying it was "full steam forward".

Earlier this 12 months, the deal got here underneath the highlight after the Trump administration mentioned it might evaluate the small print to make sure it match with its "America First" agenda, elevating issues Australia could not be capable to purchase US submarines to switch its ageing fleet.

Requested if Australia could be getting the submarines, Trump mentioned: "Oh no, they're getting them".

China at present controls about 70% of uncommon earths mining and 90% of the processing of the supplies, that are present in the whole lot from defence gear to laptop chips and automobiles.

US firms rely closely on the supplies, making them weak this 12 months as China has taken steps to limit entry to provides in response to new US tariffs and different tensions.

Albanese mentioned the settlement was geared toward rushing funding in three kinds of tasks, together with US investments in processing amenities in Australia.

The 2 nations additionally agreed to work collectively on points similar to pricing, allowing, and guidelines for presidency evaluate of the gross sales of firms and tasks within the sector.

The US individually mentioned it might put money into the development of a 100 tonnes-per-year superior gallium refinery in Western Australia and was getting ready to supply some $2.2bn in financing to advance vital minerals tasks by way of its Export-Import Financial institution.

The Trump administration in latest months has already introduced a collection of investments in firms similar to US uncommon earths miner MP Supplies and Canada's Trilogy Metals and Lithium America's, which have tasks within the US.

In alternate for the help, it has obtained possession stakes within the corporations.

Forward of the assembly, shares in Australian firms similar to Lynas Uncommon Earths had jumped on the prospect of elevated help. Lynas was awarded a contract by the US Protection Division just a few years in the past and is engaged on a challenge in Texas.

The framework revealed by the White Home was gentle on particulars, reflecting the fragile points at play.

Australia is a serious supply of vital minerals however just like the US, it depends on China, its greatest commerce associate, for the processing required to show the supplies into one thing firms can use.