Wedoany.com Report-Oct. 21, On Monday,  President Donald Trump and visiting Australian Prime Minister Anthony Albanese signed an agreement to expand cooperation on critical minerals and rare earths. Trump said: “In about a year from now, we’ll have so much critical mineral and rare earths that you won’t know what to do with them.” Albanese described the deal as an $8.5 billion “pipeline that we have ready to go,” emphasizing that it elevates economic and defense collaboration between the two nations.

President Donald J. Trump welcomes the Prime Minister of Australia, Anthony Albanese to the White House.

The agreement includes Australian processing of rare earths, with Albania noting that Australia has the “capacity” to expand these efforts. Both countries pledged to protect domestic markets through trading standards involving “price floors or similar measures.” Initial projects will see the US and Australia each contributing more than $1 billion over six months, with further projects involving both countries and one including Japan. Specific financing entities were not detailed.

The Pentagon will support construction of a 100 metric ton-per-year advanced gallium refinery in Western Australia, while the Export-Import Bank of the United States is issuing letters of interest for over $2.2 billion in critical mineral project financing. This marks Albanese’s first White House visit since Trump resumed office.

Australia, holding the world’s fourth-largest rare earth deposits, is positioning itself as a reliable source for materials used in semiconductors, defense, and renewable energy. Lynas Rare Earths Ltd. remains the only producer of heavy rare earths outside China. In preparation for the visit, over a dozen Australian mining firms met with US officials in Washington to explore equity-like investment opportunities as part of broader supply chain diversification.

Australian Treasurer Jim Chalmers also met US investors, including Blackstone Inc. and Blue Owl Capital, to promote Australia as a stable, resource-rich partner. Confidence in US-Australia rare earth cooperation has driven investor interest, with shares of companies like Lynas rising over 150% in the past year.

Defense cooperation was also highlighted. Trump said discussions included “trade, submarines, lots of other military equipment,” with national security a key topic. Australia agreed to purchase $1.2 billion in underwater drones and will receive the first tranche of Apache helicopters in a $2.6 billion deal.

Under the Aukus pact, the US plans to sell up to five Virginia-class nuclear-powered submarines to Australia by the early 2030s. The UK and Australia will co-develop a next-generation submarine, partly using US technology, expected to be completed in the 2040s. Trump confirmed: “We are doing that. We have the best submarines in the world, anywhere in the world, and we’re building a few more, currently under construction. And now we’re starting, we have it all set with Anthony.”

While Australia has sought tariff relief, Trump indicated it is unlikely, noting: “Australia pays very low tariffs — very, very low tariffs.” Albanese faces balancing trade ties with both the US and China, his country’s largest trading partner, having visited Beijing in July 2025.

The agreement underscores strengthened US-Australia cooperation in critical minerals, energy, and defense, aiming to secure strategic supply chains and advanced military capabilities over the coming decade.