U.S. President Donald Trump meets Australia’s Prime Minister Anthony Albanese within the Cupboard Room on the White Home, in Washington, D.C., U.S., October 20, 2025.
Kevin Lamarque | Reuters
President Donald Trump and Australian Prime Minister Anthony Albanese on Monday signed an settlement on critical minerals and rare earths that Albanese stated consists of plans for tasks value a complete of as much as $8.5 billion.
Albanese, throughout a gathering with Trump on the White Home, stated, “There will likely be $1 billion contributed from Australia and the USA over the subsequent six months with tasks which are instantly out there.”
However the White Home subsequently issued a truth sheet that stated the international locations would make investments greater than $3 billion in crucial mineral tasks over the subsequent six months. It described the settlement as a “framework.”
The White Home additionally stated that the Export-Import Financial institution of the USA will problem seven letters of curiosity for greater than $2.2 billion in financing, unlocking as much as $5 billion in complete funding.
CNBC has requested the White Home and the Australian prime minister’s workplace for clarification on the discrepancy between what Albanese stated and what the actual fact sheet stated.
The framework settlement between Australia and the U.S. comes because the Trump administration is searching for to ascertain a crucial mineral and uncommon earths provide chain that isn’t depending on China.
Uncommon earths are a subset of crucial minerals. They’re used to provide magnets which are essential inputs in U.S. weapons platforms, semiconductor manufacturing, robotics and electrical autos amongst different functions.
China dominates the worldwide uncommon earths provide chain, notably refining and processing. The U.S. relies on Beijing for uncommon earths imports. Australia, a detailed U.S. ally, is among the few international locations on the earth aside from China that processes uncommon earths.
Pentagon funding in Australia
Albanese stated there will likely be three teams of joint tasks between the 2 international locations, which can embody firms reminiscent of Alcoa. The U.S. will spend money on uncommon earths processing in Australia, the prime minister stated. One undertaking is a three way partnership between Australia, the U.S. and Japan, he stated.
“What we’re attempting to do right here is to take the alternatives that are there,” Albanese informed reporters.
The Pentagon will spend money on constructing a gallium refinery in western Australia with a capability of 100 metric tons per yr, in keeping with the White Home. Alcoa introduced in August that it’s exploring the feasability of a gallium project with Japan at one of many firm’s alumina refineries in western Australia.
“In a few yr from now, we’ll have a lot crucial mineral and uncommon earths that you just will not know what to do with them,” Trump informed reporters. The U.S. can also be working with different nations to construct a provide chain that is not depending on China, the president stated.
China-U.S. tensions
China introduced strict export controls on uncommon earths earlier this month, pushing Beijing and Washington to the brink of a renewed commerce battle. Trump has threatened 100% tariffs on Chinese language items beginning Nov. 1 or sooner if Beijing doesn’t again down.
“They threatened us with uncommon earths, and I threatened them with tariffs, however I may additionally threaten them with many different issues, like airplanes,” Trump stated Monday.
Trump confirmed he’ll meet with Chinese language President Xi Jinping in South Korea later this month. The U.S. president stated he’ll go to China early subsequent yr.
“We had presidents that allowed China and different international locations get away with homicide,” Trump stated. “We’re not going to permit that, however we will have a good deal. I wish to be good to China. I really like my relationship with President Xi. We have now an awesome relationship.”
