The United States and Australia have signed a deal aimed at increasing supplies of rare earths and other critical minerals as the Trump administration looks for ways to counter China's market dominance.
Australian Prime Minister Anthony Albanese said the deal would support an $8.5 billion (A$13 billion, £6.3 billion) pipeline of “ready-to-go” projects that would expand the country's mining and processing capacity.
The framework document includes $1 billion for both countries to invest in projects in the United States and Australia over the next six months.
The US and Australia have been working on these issues since President Trump's first term, but Albanese said the latest agreement takes the partnership to the “next level”.
US President Donald Trump also commented on Monday on Australia's multibillion-dollar submarine deal with the US and UK, known as Oaks, saying it was “full steam ahead.”
The deal came under the spotlight earlier this year when the Trump administration said it would review the details to make it fit with its “America First” policy, raising concerns that Australia would not be able to buy American submarines to replace its aging fleet.
Asked if Australia would get submarines, Trump said, “No, Australia is getting them.”
China currently controls about 70% of rare earth mining and 90% of the processing of rare earth materials, which are used in everything from defense equipment to computer chips to cars.
U.S. companies have relied heavily on the material this year, making them vulnerable as China took steps to restrict access to supplies in response to new U.S. tariffs and other tensions.
Shares in Australian rare earth miners soared on Tuesday following the announcement.
Perth-based company Arafura Rare Earths rose about 7.7%, while another major producer, Iluka Resources, rose more than 3%.
Mr Albanese said the agreement was aimed at accelerating investment in three types of projects, including US investment in Australian processing facilities.
The two countries also agreed to cooperate on issues such as pricing, permitting and government review rules for the sale of companies and projects in the sector.
Separately, the United States announced it would invest in the construction of an advanced 100-tonne-per-year gallium smelter in Western Australia and said it was preparing to provide about $2.2 billion in financing through the Export-Import Bank to advance key mineral projects.
The Trump administration has already announced a series of investments in recent months in companies with projects in the U.S., including U.S. rare earth mining company MP Materials and Canada's Trilogy Metals and Lithium Americas.
In exchange for the support, the company took ownership of the enterprise.
Ahead of the meeting, shares in Australian companies such as Lynas Rare Earths had soared on the prospect of more support. Lynas won a contract from the U.S. Department of Defense several years ago and is working on a project in Texas.
The framework released by the White House is light on details and reflects the sensitive issues currently underway.
Australia is a major source of critical minerals, but like the United States, it relies on its largest trading partner, China, for the processing necessary to turn materials into things that businesses can use.