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 vital minerals and uncommon earths that Albanese mentioned 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, mentioned, “There will probably be $1 billion contributed from Australia and america over the subsequent six months with tasks which can be instantly obtainable.”
However the White Home subsequently issued a truth sheet that mentioned the nations would make investments greater than $3 billion in vital mineral tasks over the subsequent six months. It described the settlement as a “framework.”
The White Home additionally mentioned that the Export-Import Financial institution of america will situation 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 mentioned and what the very fact sheet mentioned.
The framework settlement between Australia and the U.S. comes because the Trump administration is searching for to ascertain a vital mineral and uncommon earths provide chain that isn’t depending on China.
Uncommon earths are a subset of vital minerals. They’re used to supply magnets which can be essential inputs in U.S. weapons platforms, semiconductor manufacturing, robotics and electrical autos amongst different purposes.
China dominates the worldwide uncommon earths provide chain, significantly refining and processing. The U.S. depends on Beijing for uncommon earths imports. Australia, a detailed U.S. ally, is likely one of the few nations on the planet apart from China that processes uncommon earths.
Pentagon funding in Australia
Albanese mentioned there will probably be three teams of joint tasks between the 2 nations, which can embrace firms equivalent to Alcoa. The U.S. will put money into uncommon earths processing in Australia, the prime minister mentioned. One undertaking is a three way partnership between Australia, the U.S. and Japan, he mentioned.
“What we’re making an attempt to do right here is to take the alternatives that are there,” Albanese advised reporters.
The Pentagon will put money into constructing a gallium refinery in western Australia with a capability of 100 metric tons per yr, based on the White Home. Alcoa introduced in August that it’s exploring the feasability of a gallium undertaking with Japan at one of many firm’s alumina refineries in western Australia.
“In a few yr from now, we’ll have a lot vital mineral and uncommon earths that you just will not know what to do with them,” Trump advised reporters. The U.S. can be working with different nations to construct a provide chain that is not depending on China, the president mentioned.
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 warfare. 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 mentioned Monday.
Trump confirmed he’ll meet with Chinese language President Xi Jinping in South Korea later this month. The U.S. president mentioned he’ll go to China early subsequent yr.
“We had presidents that allowed China and different nations get away with homicide,” Trump mentioned. “We’re not going to permit that, however we will have a good deal. I wish to be good to China. I like my relationship with President Xi. We have now an ideal relationship.”
