US and Australia Forge Agreement to Boost Critical Minerals Cooperation
WASHINGTON D.C. – October 21, 2025 - The United States and Australia have signed an agreement focused on bolstering cooperation regarding critical minerals, aiming to secure supply chains and reduce reliance on China, the world’s leading producer of these vital resources. The agreement was reached during a meeting between US President Donald Trump and Australian Prime Minister Anthony Albanese.
While the full details of the pact remain undisclosed, both leaders confirmed a key component involves the processing of minerals. As part of the agreement, both countries will contribute $1 billion over the next six months to fund joint projects in the sector.
The move comes as the US actively seeks access to rare earths and critical minerals globally, spurred by China’s increasing control over their supply. According to data from the US Geological Survey, China holds the world’s largest reserves of rare earth elements, but Australia also possesses notable deposits.
The leaders also discussed the $239.46 billion AUKUS agreement, finalized in 2023, which outlines australia’s planned purchase of US nuclear-powered submarines, slated for delivery in 2032, followed by the joint progress of a new submarine class with Britain. US Navy Secretary John Phelan stated that ongoing efforts are focused on refining the original AUKUS framework and addressing ambiguities.President Trump characterized these adjustments as “minor details,” emphasizing a commitment to “full steam ahead” with the submarine program.
Australian officials have expressed confidence in the continuation of AUKUS, with defense Minister Richard Marles recently indicating the completion date of the current review. Canberra is already demonstrating its commitment to the agreement, contributing $2 billion this year to increase production capacity at US submarine shipyards and preparing to host US Virginia-class submarine maintenance at its Indian Ocean naval base starting in 2027.
The meeting between Trump and Albanese was the first official bilateral encounter since Trump took office ten months prior, a delay that had prompted some concern in Australia, with the Pentagon encouraging increased defense spending from Canberra. The two leaders briefly met on the sidelines of the United Nations General Assembly in New York last month.
Australia has also signaled its willingness to offer shares in its planned strategic reserve of critical minerals to allies, including Britain, as Western nations seek to diversify their sources for these essential materials. Recent condemnation from US officials targeted China’s expanded rare earth export controls, labeling them a threat to global supply chains.
Australia, rich in resources, is focused on developing its capacity to both extract and process rare earths, having offered preferential access to its strategic reserve during US trade negotiations in April.
Despite its strong alliance with the US, Australia maintains China as its largest trading partner, with exports of iron ore and coal historically vital to its national budget. The Albanese government is actively working to diversify its export markets following a period of trade restrictions imposed by Beijing on Australian agriculture and coal between 2020 and 2023. The United States currently enjoys a significant trade surplus with australia, benefiting from some of the lowest US tariff rates applied to the contry.
