US and Australia sign landmark mineral deal
US President Donald Trump meets with Australian Prime Minister Anthony Albanese in the Cabinet Room at the White House on October 20, 2025 in Washington, DC, US.
Kevin Lamarck | Reuters
President Donald Trump And Australian Prime Minister Anthony Albanese signed a critical minerals deal on Monday that Albanese said included plans for projects totaling up to $8.5 billion.
“Australia and the United States will contribute $1 billion over the next six months with projects immediately available,” Albanese said during a meeting with Trump at the White House.
But then the White House released a fact sheet that said the country would invest more than $3 billion in critical mineral projects over the next six months. It describes the agreement as a “framework”.
The White House also said the Export-Import Bank of the United States would issue seven letters of interest for more than $2.2 billion in financing, unlocking a total investment of up to $5 billion.
CNBC has asked the White House and the Australian Prime Minister’s Office to explain the discrepancy between what Albanese said and what the fact sheet said.
Albanese said there will be three groups of joint projects between the two countries, which will include such companies Alcoa. US will invest in rare earth processing in Australia, Prime Minister said. One project is a joint venture between Australia, the US and Japan, he said.
“What we’re trying to do here is take advantage of the opportunities that are there,” Albanese told reporters.
According to the White House, the US will invest in building a gallium refinery with a capacity of 100 metric tons per year in Western Australia. Alcoa announced in August that it was exploring the feasibility of a The gallium project with Japan at one of the company’s alumina refineries in Western Australia.
China dominates the global rare earth supply chain, particularly refining and processing. The US is dependent on Beijing for imports of rare earths. Australia, a close ally of the US, is one of the few countries in the world besides China that processes rare earths.
“About a year from now, we’ll have so many critical minerals and rare earths that you won’t know what to do with them,” Trump told reporters. The US is working with other nations to build supply chains that are not dependent on China, the president said.
Sino-US tensions
China announced tougher export controls on rare earths earlier this month, pushing Beijing and Washington to the brink of a renewed trade war. Trump has threatened to impose 100% tariffs on Chinese goods on or before November 1 if Beijing does not back down.
“They threatened us with rare earths and I threatened them with tariffs, but I can threaten them with many other things, like airplanes,” Trump said Monday.
Trump confirmed that he will meet the Chinese President Xi Jinping in South Korea later this month. The US President said he will visit China early next year.
“We had a president who let China and other countries get away with murder,” Trump said. “We’re not going to allow it, but we’re going to have a fair deal. I want to be good with China. I like my relationship with President Xi. We have a good relationship.”
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