WASHINGTON- President Trump and Australian Prime Minister Anthony Albanese signed a critical minerals deal at the White House on Monday, as the United States takes interest in the continent’s rich rare earth resources while China imposes tougher rules on exporting its own critical minerals overseas.
Both leaders described the deal as an $8.5 billion deal between the allies. Trump said this was negotiated over several months.
“Today’s deal on critical minerals and rare earths only takes “US-Australia relations” to the next level,” Albanese added.
This month, Beijing announced it would require foreign companies to obtain approval from the Chinese government to export magnets containing even traces of rare earths from China or produced with Chinese technology. The Republican Trump administration says this gives China broad power over the global economy by controlling the technology supply chain.
“Australia is really, really going to be helpful in the effort to make the global economy less risky, less exposed to the kind of rare earth extortion that we’re seeing from the Chinese,” Kevin Hassett, director of the White House National Economic Council, told reporters Monday morning before Trump’s meeting with Albanese.
Hassett highlighted that Australia has one of the best mining economies in the world, while praising its refiners and its abundance of rare earth resources. Australian officials accompanying Albanese include ministers for resources, industry and science, and Australia has dozens of critical minerals sought by the United States.
The prime minister’s visit comes just before Trump plans to meet Chinese President Xi Jinping in South Korea later this month.
For his part, Prime Minister Albanese said ahead of his visit that the two leaders will have the opportunity to deepen ties between their countries in trade and defense. Another expected topic of discussion is AUKUS, a security pact with Australia, the United States and the United Kingdom signed under President Biden’s administration.
Trump has not indicated publicly whether he wants to keep AUKUS intact, and the Pentagon is reviewing the deal.
“Australia and the United States have stood side by side in every major conflict for over a century,” Albanese said before the meeting. “I look forward to a positive and constructive meeting with President Trump at the White House.”
The center-left Albanese was re-elected in May and suggested shortly after his victory that his party would increase its majority by not modeling itself on Trumpism.
“Australians have chosen to tackle global challenges the Australian way, looking after each other while building for the future,” Albanese told supporters during his victory speech.
Kim and Madhani write for the Associated Press.
