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U.S., Australia Seal USD2B Rare Earths Agreement
(MENAFN) US President Donald Trump and Australian Prime Minister Anthony Albanese finalized a strategic pact on Monday to boost America’s access to vital minerals crucial for advanced technology industries.
The agreement commits both nations to invest over $1 billion each in mining and processing ventures in Australia within the next six months. This move forms a key part of Washington’s broader effort to lessen dependence on China for critical resources.
China dominates nearly 70% of the world’s critical mineral production, which is essential for electric vehicles, semiconductors, and defense systems.
While the White House emphasized the investments will target mineral deposits valued at $53 billion, it did not disclose specific details about the types or locations of these resources.
“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,” President Trump told reporters.
Prime Minister Albanese highlighted Australia’s readiness, stating, “Australia has an $8.5 billion ‘pipeline that we have ready to go,’” during the White House meeting.
The deal unfolds amid rising US-China tensions over rare-earth supplies. Earlier this year, Beijing imposed export restrictions on critical minerals in retaliation to Trump’s trade measures.
In a related statement, Trump declared the US is in a “trade war” with China.
In early October, China introduced new export controls on select strategic minerals with dual military and civilian applications, citing national security concerns. Although these measures do not specifically target the US, American high-tech firms remain heavily dependent on Chinese rare-earth imports.
This supply uncertainty has accelerated US initiatives to develop alternative mineral production sources. Following China’s export controls, Trump threatened a 100% tariff on Chinese goods starting November, further intensifying the trade conflict.
Chinese Foreign Ministry spokesman Lin Jian responded last week, warning that “tariff wars and trade wars have no winners” and called for a solution through “consultation on the basis of equality, respect, and mutual benefit.”
Earlier in the year, Trump raised “reciprocal tariffs” on China, some exceeding 100%, but later paused the hikes to advance trade talks, extending the suspension until November 10. Currently, China faces a baseline tariff rate of 10%, with higher rates on select products.
The agreement commits both nations to invest over $1 billion each in mining and processing ventures in Australia within the next six months. This move forms a key part of Washington’s broader effort to lessen dependence on China for critical resources.
China dominates nearly 70% of the world’s critical mineral production, which is essential for electric vehicles, semiconductors, and defense systems.
While the White House emphasized the investments will target mineral deposits valued at $53 billion, it did not disclose specific details about the types or locations of these resources.
“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,” President Trump told reporters.
Prime Minister Albanese highlighted Australia’s readiness, stating, “Australia has an $8.5 billion ‘pipeline that we have ready to go,’” during the White House meeting.
The deal unfolds amid rising US-China tensions over rare-earth supplies. Earlier this year, Beijing imposed export restrictions on critical minerals in retaliation to Trump’s trade measures.
In a related statement, Trump declared the US is in a “trade war” with China.
In early October, China introduced new export controls on select strategic minerals with dual military and civilian applications, citing national security concerns. Although these measures do not specifically target the US, American high-tech firms remain heavily dependent on Chinese rare-earth imports.
This supply uncertainty has accelerated US initiatives to develop alternative mineral production sources. Following China’s export controls, Trump threatened a 100% tariff on Chinese goods starting November, further intensifying the trade conflict.
Chinese Foreign Ministry spokesman Lin Jian responded last week, warning that “tariff wars and trade wars have no winners” and called for a solution through “consultation on the basis of equality, respect, and mutual benefit.”
Earlier in the year, Trump raised “reciprocal tariffs” on China, some exceeding 100%, but later paused the hikes to advance trade talks, extending the suspension until November 10. Currently, China faces a baseline tariff rate of 10%, with higher rates on select products.
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