U.S. and Australia sign $3B critical minerals deal

President Donald Trump and Australian Prime Minister Anthony Albanese signed a deal Monday that will pump billions of dollars into vital mineral projects.

The US and Australia will contribute $3 billion to the projects over the next six months. The total project pipeline is valued at $8.5 billion, the governments said.

As part of the deal, the US Department of Defense will invest in a gallium refinery in Western Australia capable of producing 100 tons per year. Currently, the United States imports about 21 tons of gallium, representing 100% of domestic consumption. According to US Geological Survey.

The move comes as China restricts exports of certain minerals, including rare earth elements essential for manufacturing electronics and electric motors. Gallium, for example, is used in microwave circuits and blue and violet LEDs, which can be used to make powerful lasers.

Alongside the landmark mineral deal, Australia has agreed to buy $1.2 billion worth of autonomous underwater vehicles (AUVs) from defense startup Anduril. The White House did not specify whether the purchase agreement is new or part of a previously announced $1.12 billion program under which Anduril will supply the Australian Navy with a fleet of Ghost Shark AUVs. That was the deal announcement In September