US and Australia Forge Landmark Critical Minerals Deal to Bolster Supply Chains

Historic Agreement Signed at the White House

In a significant move to strengthen global supply chains and enhance economic security, President Donald Trump of the United States and Australian Prime Minister Anthony Albanese signed a landmark Critical Minerals Framework at the White House in Washington D.C. on Monday, October 20, 2025. The agreement, formally known as the 'United States–Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths,' aims to boost cooperation in the critical minerals sector and reduce reliance on external supply, particularly from China.

The deal, which has been under negotiation for several months, establishes an $8.5 billion pipeline of priority projects. Both the U.S. and Australian governments intend to invest at least $1 billion each over the next six months into mining and processing projects. The recoverable resources in these projects are estimated to be worth $53 billion.

Key Initiatives and Investments

The framework outlines several key initiatives designed to accelerate the development of secure critical mineral supply chains. These include:

• Investment in Specific Projects: Two cornerstone projects have been identified for immediate investment. The Alcoa-Sojitz Gallium Recovery Project in Wagerup, Western Australia, will receive up to $200 million in concessional equity finance from the Australian government, alongside a U.S. investment. This project is expected to provide up to 10 percent of the total global gallium supply, a critical input for defense and semiconductor manufacturing. The Arafura Nolans project in the Northern Territory will also receive a $100 million equity investment from Australia, aiming to produce 5 percent of global rare earths.
• Supply Chain Security: The agreement focuses on establishing a secure supply chain for critical minerals and rare earths essential for defense and other advanced technologies.
• Regulatory Streamlining: Efforts will be made to streamline or deregulate the permitting process for critical minerals and rare earths projects.
• Market Protection: The framework includes provisions to protect domestic critical minerals and rare earth markets from unfair trade practices, including the adoption of price-support mechanisms like price floors.
• Joint Response Group: A U.S.-Australia Critical Minerals Supply Security Response Group will be established, co-led by the U.S. Secretary of Energy and the Australian Minister for Resources, to identify vulnerabilities and accelerate mineral delivery.

Strategic Importance and Geopolitical Context

The agreement is seen as a direct response to China's tightening control over the global supply of rare earths and critical minerals. President Trump emphasized the goal of reducing reliance on China, stating, 'In about a year from now we'll have so much critical mineral and rare earth that you won't know what to do with them.' Prime Minister Albanese highlighted the strength of the U.S.-Australia alliance, noting, 'Australia is home to much of the periodic table of critical minerals and rare earth metals that are vital for defence and other advanced technologies. We're going to make more things together.'

This critical minerals deal further reinforces the broader strategic partnership between the two nations, including the AUKUS security pact. Australia has also committed to significant defense investments, including the purchase of $1.2 billion in Anduril unmanned underwater vehicles and $2.6 billion in Apache helicopters, and has contributed $1 billion to modernize the U.S. submarine industrial base, with another $1 billion planned by year-end.

Economic Impact and Future Outlook

The framework is expected to create tens of thousands of new, high-paying jobs in both countries. The Export-Import Bank of the United States is issuing seven Letters of Interest for over $2.2 billion in financing, unlocking up to $5 billion of total investment for critical minerals and supply-chain security projects. The U.S. Department of War will also invest in a 100 metric ton-per-year advanced gallium refinery in Western Australia.

Both leaders expressed optimism about the future of the U.S.-Australia relationship, with Prime Minister Albanese stating the deal would take the relationship 'to the next level.' The agreement represents a concerted effort to build resilient, allied mineral supply chains and secure essential resources for advanced manufacturing and defense technologies.