Mon Oct 20 17:40:33 UTC 2025: ## US and Australia Ink Rare Earth Deal to Challenge China’s Dominance

Washington D.C. – In a move aimed at bolstering Western supply chains and reducing reliance on China, US President Donald Trump and Australian Prime Minister Anthony Albanese signed a landmark agreement on rare earth and critical minerals at the White House on Monday. The deal, reportedly negotiated over the past four to five months, will see the two countries each invest $1 billion over the next six months into mining and processing projects.

Prime Minister Albanese hailed the agreement as an $8.5 billion pipeline “ready to go,” and the agreement also establishes a minimum price floor for critical minerals, a long-sought goal for Western miners. While China currently holds the world’s largest rare earth reserves, Australia possesses significant resources and aims to become a key player in the sector.

Beyond minerals, the two leaders also discussed the existing $239.4 billion AUKUS agreement, a trilateral military partnership between the US, Australia, and the United Kingdom. This agreement will see Australia purchase US nuclear-powered submarines in 2032, followed by the development of a new submarine class with British collaboration. While some ambiguities remained in the initial agreement, both Trump and Albanese emphasized that progress was continuing “full steam ahead.” The US Navy Secretary John Phelan stated that the US and Australia were working to clarify the ambiguities in the prior agreement.

The meeting comes after a 10-month delay in official talks since Trump assumed office, which had caused some unease in Australia as the Pentagon has urged Canberra to increase defence spending. Australia is contributing $2 billion this year to boost production rates at US submarine shipyards and preparing to maintain US Virginia-class submarines at its Indian Ocean naval base starting in 2027.

Furthermore, Australia is open to selling shares in its planned strategic reserve of critical minerals to allies, including Britain, as Western nations actively seek to diversify their sources of rare earths. This initiative follows recent criticism from top US officials regarding China’s expanding rare earth export controls, which they view as a threat to global supply chains.

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