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Trump noted the deal had been “negotiated over a period of four, five months”, speaking to reporters with Albanese from the White House on Tuesday morning.
Australia has some of the richest deposits of mineral sands and rare earth minerals in the world, necessary for the production of green energy technologies, as well as products like mobile phones and weapons.
As China tightens rules on its exports, threatening to halve them altogether, it has become the cause of heightened tensions between the US and China. The deal hopes to challenge China’s stronghold.
“In a year from now we’ll have so much (critical minerals) … you won’t know what to do with them,” Trump said.
While the full agreement has not been shared, Albanese said both Australia and the US will contribute $1 billion each over the next six months.
The spokesperson highlighted that the agreement “extends beyond mere extraction,” promising an ambitious pipeline of projects valued at US$8.5 billion (approximately $13 billion).
“Our plan is called a future made in Australia, which is about not just digging things up and exporting them, but how do we make sure that we have across the supply chains, with our friends, being able to benefit, seize those opportunities,” Albanese explained.
“This initiative encompasses processing efforts and fosters joint ventures between Australia and the United States,” he added.
There are three main sections to the deal: joint investments between Australia and the US on rare earths, US investment in Australia to process critical minerals and planned projects between the US, Australia and Japan.
The deal will see coordinated work across the supply chain to identify vulnerabilities and accelerate processing, including the review of prices and unfair trade practices.
A White House statement said both governments will spend $US 3 billion ($4.61 billion) over the next three months.
Subsequent to the press briefing, the Albanese administration unveiled investments in two significant projects.
These were a US$200 million ($307 million) boost to the Alcoa-Sojitz Gallium Recovery Project in Wagerup, Western Australia, and US$100 million ($154 million) in Arafura Nolans project in the Northern Territory.
Both projects will provide critical minerals required for defence and energy security manufacturing, the government says.
“Cooperation on critical minerals and rare earth supply chains is testament to the trusted partnership between Australia and the United States as strategic defence allies,” Albanese said in a statement.
“I look forward to continuing to work with President Trump to strengthen our partnership and support American and Australian workers, businesses and investors.”
