The United States of America and Australia have concluded an agreement on expanding the supply of rare earth and critical minerals. This is reported by BBC, according to UNN.
Details
Australian Prime Minister Anthony Albanese announced that the agreement will support projects worth $8.5 billion that are ready for implementation and will strengthen the country's ability to extract and process minerals.
The framework text states that over the next six months, both countries will invest $1 billion in projects in the US and Australia.
It is noted that the cooperation has been ongoing since Trump's first term, but Albanese emphasized that the new agreement takes the partnership to a "new level."
According to the BBC, China currently controls about 70% of rare earth metal extraction and 90% of their processing, which are used everywhere: from defense equipment to computer chips and cars.
American companies are largely dependent on these materials, making them vulnerable this year as China has taken steps to restrict access to supplies in response to new US tariffs and other tensions.
The agreement provides for three areas of investment, including the creation of processing facilities in Australia with the participation of American capital. Both countries have agreed to cooperate on pricing, permitting, and controlling the sale of companies in this sector.
The US plans to invest in the construction of a gallium plant in Western Australia with a capacity of 100 tons per year and is allocating about $2.2 billion through the Export-Import Bank for the development of critical mineral projects.
In recent months, the Trump administration has already invested in American and Canadian companies working with rare earth metals, acquiring a share of ownership in these projects.
Ahead of the meeting, shares of Australian companies, including Lynas Rare Earths, rose on expectations of new investments. Lynas, which received a contract from the US Department of Defense, is implementing a project in Texas.
Australia remains one of the leading suppliers of critical minerals, but, like the US, it depends on China for their processing.
Recall
The Pentagon is launching a global program to purchase critical minerals worth up to $1 billion to replenish national reserves. This is aimed at reducing US dependence on China, which dominates this market.
China tightens control over rare earth technology exports09.10.25, 05:48 • [views_4710]