A major new deal was signed in October 2025 (Rare Earths). The United States and Australia joined together. They signed a huge deal called the US Australia Rare Earth Agreement. This deal is about minerals that are extremely important. These minerals are called rare earth elements and critical minerals.
These minerals are needed to make almost all modern technology. They are in cell phones, electric cars, fighter jets, and wind turbines. For many years, one country has controlled most of the supply: China.
China has recently tightened its export controls on these minerals. This is a problem for the U.S. and its friends. This new deal is a bold plan to fight back. It is a commitment to build a new, safer supply chain for the future. Rare Earths
Why Are Rare Earths So Important? Rare Earths
The name “rare earth” is misleading. These minerals are not actually very rare. They are just hard to mine and process. There are 17 of these elements. They have unique magnetic and electronic powers. Without them, high-tech products do not work.
China rare earth dominance is almost complete. China controls over 90% of the world’s processing of these minerals. This means even if a country mines the raw rock, they still have to send it to China to make it useful. Rare Earths
This control gives China great power. They can decide who gets the minerals and at what price. When China tightens its export controls, it is a threat to every country that makes advanced technology. This is why the US Australia Rare Earth Agreement is a national security issue.
The New Framework: Money and Goals Rare Earths
The new agreement, called the US Australia Framework for Securing Supply, is a massive commitment. It is not just a promise. It comes with a lot of money and clear goals.
- $8.5 Billion Investment: The deal creates a total funding pool of up to $8.5 billion. Both the U.S. and Australia will invest at least $1 billion each in the first six months. This money will go to new projects.
- Investment in Processing: The main goal is not just mining. It is about building new processing monopoly plants in the U.S. and Australia. This processing step is the key to breaking China’s control.
- New Minerals: The deal focuses on rare earth elements needed for strong magnets. But it also includes other critical minerals like lithium, cobalt, and nickel, which are vital for batteries.
This US Australia framework is designed to quickly bring new supply online in 2026 and beyond.
Key Projects Under the Agreement Rare Earths
The agreement immediately named specific projects that will get money. These projects show how serious the two countries are about building a whole supply chain.
- Gallium Plant in Australia: Australia will build a plant to process a mineral called Gallium. Gallium is vital for advanced defense technologies like radar and missile guidance systems. China almost completely dominates the world’s supply of Gallium. The new Australian plant will change this.
- Arafura Rare Earths Project: This project in Australia will produce specific rare earth oxides. These are used to make permanent magnets. The U.S. is considering a huge investment in this project.
- Investment in U.S. Projects: The money will also go to new mining and processing projects inside the United States. The goal is to make the supply chains shorter and safer.
These projects will help both countries stop relying on one source.
Protecting the Market
China rare earth dominance was built partly by controlling prices. China sold minerals so cheaply that other mines around the world could not make money. They had to close down.
The US Australia Rare Earth Agreement plans to stop this unfair trade.
- Standards-Based Trading: The two countries will work to create a standards-based trading system. This system will protect their miners from unfair price drops. They may even set a minimum price floor. This guarantees that new projects can succeed.
- Stopping Asset Sales: The U.S. and Australia will work together to stop companies linked to China from buying new mining assets in other countries. This protects the supply chain from becoming controlled by one country.
This shows that the two nations are using new economic tools to secure their critical minerals supply chain.
US Australia Rare Earth Agreement
The US Australia Rare Earth Agreement is a major event in global trade and politics. It is a direct response to China’s dominance and its tightening export controls on minerals.
The $8.5 billion investment and the commitment to standards-based trading show that this is more than just talk. This US Australia framework will build a new critical minerals supply chain from the ground up.
By funding key projects like the Gallium plant, the U.S. and Australia are ensuring they have the minerals needed for everything from strategic technology to electric cars. This agreement is a sign that the West is determined to control its own future in high-tech manufacturing.
Would you like to explore the specifics of one of the named projects, like the Arafura Rare Earths investment?
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