The U.S. and Australia have signed a major deal on critical minerals.
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Following a meeting at the White House, U.S. President Donald Trump and Australian Prime Minister Anthony Albanese signed an official agreement on critical minerals that includes plans for projects worth up to $8.5 billion.
“There will be $1 billion contributed from Australia and the United States over the next six months with projects that are immediately available,” Albanese said at a news conference held at the White House on Oct. 20. Under terms of the deal, the U.S. will invest in rare-earth processing in Australia. One project will be a joint venture between Australia, the U.S., and Japan.
Sidestepping China
In all, there will be three groups of joint projects developed between Australia and the U.S., some of which will include companies such as Alcoa (AA). “What we’re trying to do here is to take the opportunities which are there,” Prime Minister Albanese told reporters.
The deal comes as the U.S. tries to lessen its reliance on China for the critical metals, magnets, and minerals that are needed to power advanced technologies such as smartphones and electric vehicles. China dominates the global rare earths supply chain, particularly when it comes to refining and processing. The U.S., and most other countries, remain dependent on China for rare earths products.
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