President Donald Trump and Australian Prime Minister Anthony Albanese have signed a landmark deal on critical minerals at the White House as the United States seeks to secure Australia’s rich rare earth resources amid China’s increasingly strict export rules.
The agreement, described by both leaders as an $8.5 billion pact between the allies, was, according to Trump, the culmination of several months of negotiations. Albanese stated that the agreement “just took” US-Australia relations “to the next level.”
This development follows Beijing’s recent announcement that foreign companies will now require Chinese government approval to export magnets containing even trace amounts of rare earth materials originating in China or produced with its technology. Trump’s Republican administration views this as giving China extensive control over the global economy by dominating the technology supply chain.
“Australia is going to be really, really helpful in the effort to take the global economy and make it less risky, less prone to the kind of rare earth extortion that we’re seeing from the Chinese,” Kevin Hassett, the director of the White House’s National Economic Council, told reporters Monday morning ahead of Trump’s meeting with Albanese.
Hassett noted that Australia has one of the best mining economies in the world, while praising its refineries and its abundance of rare earth resources. Among the Australian officials accompanying Albanese are ministers overseeing resources and industry and science, and Australia has dozens of critical minerals that the US demands.
The prime minister’s visit comes just before Trump plans to meet with Chinese President Xi Jinping in South Korea later this month.
As for Albanese, the prime minister said ahead of his visit that the two leaders will have a chance to deepen their countries’ ties on trade and defense. Another expected topic of discussion is AUKUS, a security pact with Australia, the US and the UK that was signed during the Democratic administration of US President Joe Biden.
Trump has not indicated publicly whether he wants to keep AUKUS intact, and the Pentagon is reviewing the deal.
“Australia and the United States have stood shoulder-to-shoulder in every major conflict for over a century,” Albanese said ahead of the meeting. “I look forward to a positive and constructive meeting with President Trump at the White House.”
Center-left Albanese was re-elected in May and suggested shortly after his victory that his party was increasing its majority by not modeling itself on Trumpism.
“Australians have chosen to face global challenges the Australian way and look after each other as we build for the future,” Albanese told supporters during his victory speech.