🇺🇸 US and Australia Sign Rare Earths Deal to Counter China’s Market Dominance

🇺🇸 US and Australia Sign Rare Earths Deal to Counter China’s Market Dominance

The United States and Australia have officially signed a new agreement aimed at boosting the supply of rare earths and other critical minerals, marking a major step in reducing the world’s dependence on China’s dominance in the sector.

Australian Prime Minister Anthony Albanese announced that the deal would support a pipeline of $8.5 billion (A$13 billion; £6.3 billion) in “ready-to-go” projects to expand mining and processing capacities across both nations.

According to the agreement framework, $1 billion will be jointly invested by the two countries over the next six months to fund key projects in both the US and Australia.

“This partnership takes our cooperation to the next level,” Albanese said, emphasizing the importance of securing long-term supply chains for critical resources.

The US and Australia have been working together on rare earth issues since former President Donald Trump’s first term, but this latest development marks a renewed effort to counter China’s growing influence in the global minerals market.

On Monday, President Trump also reaffirmed his support for the AUKUS submarine pact with the UK and Australia, calling it “full steam ahead.”

“Oh no, they’re getting them,” Trump said when asked if Australia would still receive the submarines under the new deal.

China currently controls about 70% of global rare earths mining and nearly 90% of processing capacity, making the US heavily dependent on Chinese exports for critical materials used in defense, computer chips, and electric vehicles.

The new agreement aims to diversify supply chains and ensure stability in key industries affected by recent US-China trade tensions.

Following the announcement, shares of Australian rare earth mining companies surged.

• Arafura Rare Earths rose by approximately 7.7% 
• Iluka Resources gained more than 3% on Tuesday trading. 

The deal also includes collaboration on pricing, permitting, and foreign investment review frameworks, ensuring that future projects align with both countries’ economic and security goals.

Additionally, the US confirmed plans to invest in a 100-tonne-per-year advanced gallium refinery in Western Australia and pledged $2.2 billion in financing through its Export-Import Bank to support critical mineral projects.

This is not just about minerals — it’s about national security, technology independence, and economic resilience Albanese concluded.