US President Donald Trump and Australian Prime Minister Anthony Albanese have signed a significant agreement aimed at enhancing the supply of rare earths and critical minerals. This deal, valued at $8.5 billion, is part of efforts to reduce reliance on China, which currently dominates the global market for these essential materials.

During their meeting at the White House, both leaders highlighted the importance of this agreement in strengthening the strategic partnership between the US and Australia. The deal includes a commitment from both countries to invest $1 billion each over the next six months into mining and processing projects. Albanese stated that this agreement elevates the US-Australia relationship to a new level.

China produces approximately 70% of the world’s rare earths and controls 90% of their processing. Recent actions by China, including stricter export regulations, have raised concerns about global supply chains. Trump emphasized the need for the US to secure its own sources of these minerals, stating, "In about a year from now, we’ll have so much critical mineral and rare earth that you won’t know what to do with them."

The agreement also includes plans for the US Export-Import Bank to issue over $2.2 billion in support for key mineral projects in Australia. This funding will target various companies involved in the critical minerals sector, which is vital for advanced technologies and defense systems.

Additionally, the two leaders discussed the AUKUS security pact, which involves the US, Australia, and the UK. Trump expressed strong support for this agreement, which includes plans for Australia to acquire nuclear-powered submarines from the US.

The deal aims to enhance cooperation on mining and processing, including reducing permitting times for new projects. Both countries will also work together on geological mapping and recycling of minerals, addressing concerns about national security related to foreign ownership of critical mineral assets.

Overall, this agreement marks a significant step in US efforts to diversify its supply chains and reduce dependence on China for critical minerals, which are essential for various industries, including technology and defense.