Washington is seeking to offset Beijing’s control over strategic minerals supply chains
US President Donald Trump and Australian Prime Minister Anthony Albanese struck a deal on Monday aimed at expanding America’s access to critical minerals.
Under the agreement Washington and Canberra will each invest over $1 billion in mining and processing projects in Australia over the next six months, part of Washington’s strategy to reduce reliance on China for key resources.
China accounts for nearly 70% of the global production of critical minerals, which are essential for advanced technologies, including electric vehicles, semiconductors and weapons systems.
The White House indicated that these investments would focus on critical mineral deposits valued at $53 billion, though specifics regarding the types or locations were not disclosed.
“In about a year from now, we’ll have so much critical mineral and rare earths that you won’t know what to do with them,” Trump told reporters.
Australia has an $8.5 billion “pipeline that we have ready to go,” Albanese said at the meeting with Trump at the White House.
The deal comes amid ongoing tensions between the US and China over rare-earth supplies. Earlier this year, Beijing retaliated against Trump’s trade policies by imposing export restrictions on critical minerals.
In early October, China announced new export controls on certain strategic minerals that have dual-use in military applications, citing national security. While the policy does not explicitly target the US, American high-tech companies remain heavily reliant on Chinese rare-earth supplies.
The increased supply uncertainty has fueled US efforts to establish alternative production capabilities. In response to Beijing’s imposition of export controls on rare earths Trump threatened to impose an additional 100% tariff on Chinese goods starting in November, escalating tensions.
Commenting on the standoff with the US, Chinese Foreign Ministry spokesman Lin Jian reiterated last week that “tariff wars and trade wars have no winners” and urged for resolution through “consultation on the basis of equality, respect, and mutual benefit.”
Earlier this year, Trump significantly raised “reciprocal tariffs” on China, with some exceeding 100%. However, he later suspended the increase to facilitate trade talks, extending the pause until November 10. The current baseline tariff for China stands at 10%, though certain goods face higher rates.
