The US and Australia signed a landmark agreement on critical minerals and rare earths aimed at accelerating development of a secured supply chain for materials for defence and advanced manufacturing.

Prime Minister Anthony Albanese and US President Donald Trump signed the 'US–Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths' at the White House in Washington on Monday, marking a new chapter in the countries’ more than 70-year alliance.

The agreement establishes a critical minerals supply security response group, led by the US Secretary of Energy and Australia’s Minister for Resources, to coordinate policy tools, investments and project delivery. Both governments pledged at least $1-billion each toward an $8.5-billion pipeline of priority projects over the next six months.

The US Export-Import Bank (EXIM) said it sent seven letters of interest (LoIs) totalling more than $2.2-billion to advance US-aligned critical minerals projects in Australia.

The LoIs were issued to Arafura Rare Earths, Northern Minerals, Graphinex, La Trobe Magnesium, VHM, RZ Resources, and Sunrise Energy Metals. 

The supported projects span a range of critical minerals, including rare earth elements, graphite, magnesium, titanium, and scandium, each essential to advanced defense systems, aerospace components, communications equipment, and next-generation industrial technologies. 

“There are no closer friends and allies than the United States of America and Australia,” Albanese said. “President Trump and I agreed today we will work very hard together in both our nations’ interests. We have agreed today Australia and America are going to make more things together with our historic framework on critical minerals.”

Two projects were singled out for immediate financial support. Australia committed $200-million in concessional equity to the Alcoa–Sojitz gallium recovery project in Wagerup, Western Australia, alongside a US equity investment and offtake rights.

This latest development follows support given for the project from Japan Australia Gallium Associates (JAGA), a joint venture (JV) between the Japanese government and Sojitz, through a joint development agreement with Alcoa announced in August. Following completion of feasibility assessments, Alcoa expects that a joint US, Australia and Alcoa special purpose vehicle would enter into the JV with JAGA to construct a gallium plant. The plant, which would be operated by Alcoa, would be expected to produce 100-metric tons a year of gallium. 

Gallium is naturally present in bauxite, the raw material used in the production of alumina, and can be extracted during the refining process. Gallium is a critical mineral essential to technology, especially the semiconductor industry and defence sectors. Globally, gallium production is concentrated from a single source, and market controls have heightened interest in establishing and securing alternate supply chains.

“Alcoa has been a strong contributor to both the American and Australian economies and welcomes the opportunity to support both nations in progressing a new source of gallium,” said Alcoa president and CEO William Oplinger.

The second investment involves $100-million in equity for Arafura Rare Earths’ Nolans project in the Northern Territory, which is projected to produce 5% of global rare earths once operational.

“Our nascent rare earth sector is not a prospect, it is an imperative. Since April, we have seen unprecedented disruptions to global trade and supply chain vulnerabilities exposed. By pioneering thoughtful supply chain diversification today, we are securing the foundational, long-term solutions required to meet the growing demands of tomorrow. With demand for both light and heavy rare earths forecast to grow significantly over the next three decades, Arafura’s fully integrated ore to oxide project has us well positioned to meet a disproportionate share of that future growth," said Arafura MD and CEO Darryl Cuzzubbo.

"As one of only two priority projects announced today as receiving financial commitments by the Australian government under this new framework we are looking forward to advancing the Nolans project and creating tangible outcomes for our shareholders, community partners and customers for generations to come," he added.

TRUSTED PARTNERSHIP
“Australia is home to much of the periodic table of critical minerals and rare earth metals that are vital for defence and other advanced technologies,” Albanese said. “Cooperation on critical minerals and rare earth supply chains is testament to the trusted partnership between Australia and the United States as strategic defence allies.”

The Minerals Council of Australia welcomed the framework, calling it a “milestone” in aligning economic and defence objectives between the two allies.

“The new framework includes a $1-billion investment from both nations over the next six months to help accelerate and unlock an $8.5-billion pipeline of critical mineral projects, with a joint commitment to fast-track approvals,” said CEO Tania Constable. “This is an acknowledgement of Australia’s strategically important role in the development of new technologies, defence capabilities and renewable-energy infrastructure that stems from the nation’s array of critical minerals.”

Constable described the agreement as “AUKUS in action” and said it would strengthen Australia’s position as a reliable supplier to partners in Asia, the US and Europe.

“It is a partnership that will enhance Australia’s reputation as a place to do business, and encourage greater investment in Australian mining and processing, at a time when investment is urgently required to unlock the nation’s next chapter of prosperity,” she said.