The US and Australia have signed a deal intended to boost supplies of rare earths and other critical minerals, as the Trump administration looks for ways to counter China's dominance of the market. Australian Prime Minister Anthony Albanese said the deal would support a pipeline of $8.5bn (A$13bn; £6.3bn) ready-to-go projects that would expand his country's mining and processing abilities. It includes $1bn to be invested by the two countries in projects in the US and Australia over the next six months, a framework text says.
The US and Australia have been working on these issues since Trump's first term, but Albanese said the latest agreement would take the partnership to the next level. On Monday, US President Donald Trump also commented on Australia's multi-billion dollar submarine deal with the US and UK, known as Aukus, saying it was full steam ahead.
China currently controls about 70% of rare earths mining and 90% of the processing of the materials, which are found in everything from defense equipment to computer chips and cars. The shares in Australian rare earths mining companies jumped on Tuesday after the announcement, reflecting investor optimism in light of the potential for increased investment and production. The agreement is aimed at speeding investment in various projects, including advancements in processing facilities, as both nations work to ensure a stable and independent supply of essential resources.
The US and Australia have been working on these issues since Trump's first term, but Albanese said the latest agreement would take the partnership to the next level. On Monday, US President Donald Trump also commented on Australia's multi-billion dollar submarine deal with the US and UK, known as Aukus, saying it was full steam ahead.
China currently controls about 70% of rare earths mining and 90% of the processing of the materials, which are found in everything from defense equipment to computer chips and cars. The shares in Australian rare earths mining companies jumped on Tuesday after the announcement, reflecting investor optimism in light of the potential for increased investment and production. The agreement is aimed at speeding investment in various projects, including advancements in processing facilities, as both nations work to ensure a stable and independent supply of essential resources.