The two leaders signed a landmark critical minerals agreement that will pave the way for joint rare earths projects between the two countries, as well as US projects in Australia.
Albanese said Australia and the US would each contribute $1 billion over the next six months for projects that are immediately available, and the deal would unlock an $8.5 billion pipeline of projects.
As reported by this masthead last week: The US Department of War would invest directly in Australian critical minerals projects to source rare earths needed for American fighter jets.
The minerals are indispensable for green energy, defence and smartphone technology.
The agreement, Albanese said, will involve three groups of projects:
- Projects that the US will undertake in Australia, including to bolster rare earths processing
- Joint ventures between the US and Australia
- Projects that Australia will undertake itself
Intent on finding minerals from nations outside China, Trump’s One Big Beautiful Bill, passed in July, opened up $US100 billion ($155 billion) in available loan funds specifically for critical minerals and related industries. Australia has a plentiful supply of key rare earths such as dysprosium and terbium used in advanced defence technology like F-35 jets. Each plane requires 415 kilograms of critical minerals.
“We know that American companies desperately need critical minerals, and Australia is very well placed to service that need,” Treasurer Jim Chalmers said from the US on Friday.
US President Donald Trump meets with Australian Prime Minister Anthony Albanese in the Cabinet Room at the White House.Credit: Sipa USA
