US-Australia Rare Earths Partnership: A Strategic Move Against China

Tue Oct 21 2025 21:46:51 GMT+0300 (Eastern European Summer Time)

In a significant bid to reduce reliance on China, the US and Australia have entered into a landmark deal to boost rare earth supplies, focusing on critical minerals essential for defense and technology.

The US and Australia have formalized a partnership aimed at enhancing their supplies of rare earths and other critical minerals, vital for numerous industries. With China controlling the majority of this market, this agreement seeks to shore up investment and production capabilities within both nations. Australian Prime Minister Anthony Albanese heralded the $8.5 billion initiative as a strategic advancement in the ongoing efforts to counterbalance China's dominance.

The US and Australia have signed a deal intended to boost supplies of rare earths and other critical minerals, as the Trump administration looks for ways to counter China's dominance of the market.

Australian Prime Minister Anthony Albanese said the deal would support a pipeline of $8.5bn (A$13bn; £6.3bn) ready-to-go projects that would expand his country's mining and processing abilities.

The agreement includes $1bn to be invested by the two countries in various projects in the US and Australia over the next six months, according to the framework text.

The partnership is a continuation of discussions from Trump's first term, with Albanese stating that this latest agreement would elevate their cooperative efforts.

President Donald Trump recently emphasized the significance of the agreement during comments regarding Australia's substantial submarine deal with the US and UK, signaling a commitment to the partnership.

China currently holds a vast majority of rare earths mining and processing globally, controlling approximately 70% and 90% respectively. The dominant position of Chinese suppliers puts US companies in a precarious situation, especially as recent tariffs prompted China to restrict access to these critical materials.

In response to the announcement, shares in Australian mining companies surged, reflecting optimism towards increased investment and support in the sector. Albanese mentioned a focus on expediting investments in processing facilities and addressing regulatory concerns.

The two nations have agreed to collaborate on pricing strategies and regulatory reviews pertaining to transactions within this vital sector.

This agreement marks a significant step as the US aims to reduce its dependency on Chinese processing capabilities while bolstering domestic resource extraction and mutual investments between its industries and Australia.