The US and Australia signed a rare earth deal to counter China’s dominance

The US and Australia have signed an agreement designed to boost supplies of rare earth metals 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 an $8.5 billion pipeline (A$13 billion; £6.3bn) of ‘turnkey’ projects that will expand his country’s mining and processing capabilities.

It includes $1 billion that the two countries will invest in projects in the US and Australia over the next six months, the framework text said.

The US and Australia have been working on these issues since Trump’s first term, but Albanese said the latest agreement would take the partnership to the “next level”.

On Monday, US President Donald Trump also commented Australia’s multibillion-dollar submarine deal with US and UKknown as Aukus, saying he is going full steam ahead.

The deal came under the spotlight earlier this year after the Trump administration said it would review the details to ensure it fits its “America First” agenda, raising concerns that Australia may not be able to buy US submarines to replace its aging fleet.

Asked if Australia would get the submarines, Trump said: “Oh no, they’re getting them.”

China currently controls about 70% of the mining of rare earths and 90% of the processing of the materials, which are found in everything from defense equipment to computer chips and cars.

U.S. companies rely heavily on the materials, making them vulnerable this year as China has taken steps to restrict access to supplies in response to new U.S. tariffs and other tensions.

Albanese said the agreement was aimed at accelerating investment in three types of projects, including US investment in processing facilities in Australia.

The two sides also agreed to work together on issues such as pricing, permitting and rules for government review of sales of companies and projects in the sector.

The US has separately said it will invest in building a 100-tonne-a-year advanced gallium refinery in Western Australia and is preparing to offer about $2.2 billion in funding to advance critical minerals projects through its Export-Import Bank.

The Trump administration in recent months has already announced a series of investments in companies such as US rare earth miner MP Materials and Canada’s Trilogy Metals and Lithium America’s, which have projects in the US.

In exchange for the support, she received shares in the companies.

Ahead of the meeting, shares in Australian companies such as Lynas Rare Earths jumped on the prospect of increased support. Lynas was awarded a contract by the US Department of Defense several years ago and is working on a project in Texas.

The framework released by the White House was light on detail, reflecting sensitive issues.

Australia is a major source of critical minerals, but like the US, it relies on China, its biggest trading partner, for the processing needed to turn the materials into something companies can use.