In Response to China’s Export Controls, US and Australia Leaders Sign Rare Earth and Critical Minerals Agreement

With China imposing export controls on rare earth elements (REE), the United States of America (USA) and Australia have signed an agreement in response.
On the 20th (local time), foreign media including The Associated Press (AP) reported that Australian Prime Minister Anthony Albanese, who is visiting the USA, signed a new agreement with President Donald Trump at The White House to cooperate on rare earth elements (REE) and Critical Minerals.
This agreement aims to reduce dependence on China for key industrial raw materials. Prime Minister Albanese stated that the deal is valued at $8.5 billion, with both countries planning to each invest $1 billion over the next six months in joint projects, including mineral processing.
President Trump noted that several months of preparation went into this agreement, emphasizing, "The USA and Australia are strengthening energy and technology security."
Citing a White House fact sheet, AP reported that the USA and Australia plan to invest more than $3 billion over the next six months, and that the US Department of Defense will invest in Australia's gallium processing facilities.
The agreement also includes a provision for Australia to increase its investment in the USA by about $1 trillion, bringing the total investment to $1.44 trillion by 2035.
This agreement comes as China tightens its controls over REE exports.
REE are used in electric vehicles, aircraft engines, and advanced weapons systems, and China holds the world's largest reserves.
Australia is also one of the major producers and has been expanding its processing facilities.
On this day, the leaders of the USA and Australia discussed the submarine agreement included in AUKUS (Australia-United Kingdom-United States security partnership), a trilateral military alliance with the United Kingdom.
Australia has already agreed to acquire nuclear-powered submarines from the USA by 2032 and to jointly produce submarines with the United Kingdom.
According to AP, the Australian government has pledged to invest $1.3 billion this year in expanding US shipyards for submarine construction and plans to deploy Virginia-class submarines at its naval bases starting in 2027.
jjyoon@fnnews.com Yoon Jae-joon Reporter