The news of US and Australia sign rare earths deal as well as other critical minerals is a welcoming one, as the Trump administration looks forward to ways to counter the dominance of the market by China.
Anthony Albanese, the Australian Prime Minister, said the deal would go on to support a pipeline of $8.5bn ready-to-go projects, which would expand the mining and processing abilities of his country.
It happens to include $1bn that needs to be invested by the two countries across projects in the US as well as Australia in the next six months, a framework text says.
The US and Australia have been working on such issues ever since Trump’s first term; however, Albanese said that the latest agreement is indeed going to take the partnership to another level.
On October 20, US President Donald Trump also went on to comment on the multi-billion dollar submarine deal of Australia with the US and UK called the Aukus, saying that it was indeed full steam ahead.
Earlier in 2025, the deal was highlighted after the Trump administration remarked that it is going to review the details so as to make sure that it fits with its America First agenda, therefore raising concerns that Australia may not be able to purchase US submarines so as to replace its aging fleet.
Asked if Australia is going to be getting the submarines, Trump said they are getting them.
China at present happens to hold about 70% of rare earth mining as well as 90% of the processing of the materials that happen to be found in everything from defense equipment to computer chips as well as cars.
It is well to be noted that the US companies go on to depend quite heavily on the materials, therefore making them quite susceptible in 2025, as China has already marched ahead to restrict access to the supplies in response to the new US tariffs along with certain other tensions.
The shares in rare earth mining companies from Australia jumped on October 21, 2025, after the announcement was made.
Arafura Rare Earths, which happens to be a Perth-based firm, rose by almost 7.7%, whereas Iluka Resources, another major producer, happened to gain over 3%.
Albanese remarked that the agreement was aimed at making sure that the investment is fast-paced across three types of projects that include US investments when it comes to processing facilities in Australia.
In addition to the news of US and Australia sign rare earths deal, the two countries have also agreed to go ahead and work together on issues like pricing and permitting, as well as rules for government review pertaining to sales of companies as well as projects across the sector.
The US separately went on to say that it would invest in the construction of a 100-tonne-per-year advanced gallium refinery located in Western Australia and was also preparing to provide some $2.2bn in terms of financing in order to advance critical minerals projects through its Export-Import Bank.
The Trump administration recently has already gone on to announce a series of investments across companies like MP Materials, the US rare earth miner, and also Trilogy Metals from Canada and Lithium Americas, which have projects across the US.
In exchange for this support, it has gone on to receive ownership stakes in the firms.
Ahead of the meeting, shares across the Australian companies like Lynas Rare Earths had surged on the prospect of the growing support. Lynas had been awarded a contract by the US Defense Department a few years back and is working on a project located in Texas.
The framework that has been published by the White House happened to be light on details, therefore reflecting the very slight issues at play.
Australia, apparently, happens to be a major source of critical minerals; however, like the US, it depends on China, which is its biggest trade partner, for the processing required so as to turn the materials into something that companies can make use of.