The United States and Australia have signed a major agreement to strengthen the global supply of rare earths and other critical minerals, aiming to reduce reliance on China, which dominates the market.
The deal, announced yesterday, will support a pipeline of $8.5 billion in mining and processing projects and includes $1 billion in joint investments over the next six months.
Australian Prime Minister Anthony Albanese said the partnership would elevate cooperation to the next level, enhancing both nations’ strategic and industrial capabilities.
US President Donald Trump also reaffirmed his commitment to the AUKUS submarine pact, saying Australia’s submarine acquisition was full steam ahead after a recent review.
The agreement will fast-track investments in processing facilities, pricing frameworks, and regulatory coordination.
China currently controls about 70% of global rare earth mining and 90% of processing, prompting Washington and Canberra to expand production and refine capacity.
Following the announcement, shares of Australian rare earth firms like Arafura and Iluka surged on the stock market.