The United States and Australia have sealed a major deal to expand cooperation on rare earths and other critical minerals, aiming to weaken China’s dominance in global supply chains. The agreement, signed during Prime Minister Anthony Albanese’s visit to Washington, will unlock an $8.5 billion pipeline of “ready-to-go” mining and processing projects.
Under the framework, both nations will invest $1 billion over the next six months to accelerate joint ventures in mining and processing facilities. The Trump administration called it a “strategic industrial partnership” that builds on earlier efforts to secure supply of materials essential for defence, semiconductors, and electric vehicles.
Follow Republic Policy on YouTube
China currently dominates the market, controlling nearly 70% of rare earth extraction and 90% of processing capacity. The US and its allies have grown increasingly wary as Beijing tightens export controls amid rising geopolitical tensions.
The pact will promote American investment in Australian refineries and streamline regulations for pricing, permitting, and project sales reviews. Washington also announced a new gallium refinery in Western Australia and $2.2 billion in financing via its Export-Import Bank.
Follow Republic Policy on Facebook
Shares in Australian mining firms like Lynas Rare Earths surged ahead of the announcement, underscoring investor confidence that the US–Australia alliance may finally offer a credible alternative to China’s rare earth monopoly.
