Washington and Canberra sign $8.5 billion pact to curb China’s minerals dominance

President Donald Trump and Prime Minister Anthony Albanese signed an $8.5 billion critical-minerals deal at the White House on Monday, locking in a strategic move by the United States and Australia to strengthen their control over materials used in military equipment, energy infrastructure, and ￰0￱ agreement came as both governments ramped up efforts to reduce their dependence on China, which currently dominates the supply chain of rare earths and critical ￰1￱ announcement sent Australia’s mining stocks flying on Tuesday, with several key players posting double-digit ￰2￱ Rare Earths, the country’s biggest rare earths company by market cap, climbed 4.7% in early Asia ￰3￱ Resources, which produces mineral sands, surged more than 9%.

Pilbara Minerals, focused on lithium, jumped around 5%. Smaller firms saw even bigger spikes; VHM soared 30%, Northern Minerals gained 16%, and Latrobe Magnesium, which leads Australia’s magnesium output, shot up nearly 47%. Washington puts cash behind Alcoa’s gallium plant in Western Australia One of the top priorities under the agreement is a gallium recovery project being developed by Alcoa in Western ￰4￱ ￰5￱ will take an equity stake in the facility, making it one of two focus projects under the deal. Alcoa, which is listed on the NYSE and also traded on the Australian Securities Exchange, saw its stock rally nearly 10% after the ￰6￱ minerals aren’t ￰7￱ are used in electric cars, missiles, telecom gear, and other high-tech equipment.

China, which produces the bulk of the world’s supply, has been tightening export controls during its ongoing trade war with ￰8￱ latest clampdown triggered the rush to secure alternative supply lines, with both Trump and Albanese agreeing that domestic and allied production needs to ramp up ￰9￱ said both countries will put in $1 billion each over the next six months to support shovel-ready projects. A White House fact sheet, though, later said that the actual combined investment will total more than $3 billion within that same time ￰10￱ agreement was described as a “framework” for long-term joint mineral ￰11￱ Export-Import Bank issues $2.2 billion to boost financing pipeline To keep money flowing into the pipeline, the Export-Import Bank of the United States will issue seven letters of interest covering more than $2.2 billion in ￰12￱ could unlock up to $5 billion in total project ￰13￱ funds are intended to fast-track mining and processing operations both in Australia and across trusted ￰14￱ Hassett, head of the National Economic Council, told reporters on Monday that China’s export policy created a supply chain risk that needed immediate attention.

“Australia is really, really going to be helpful in the effort to take the global economy and make it less risky, less exposed to the kind of rare earth extortion that we’re seeing from the Chinese,” Hassett said during a briefing before the Trump–Albanese ￰15￱ also called Australia one of the most important players in the space due to its extensive reserves and refining ￰16￱ Albanese were top officials overseeing resources, industry, and science, underlining how coordinated this effort is across sectors in ￰17￱ this isn’t a silver ￰18￱ Baskaran, director of the Critical Minerals Security Program at the Center for Strategic and International Studies, said the scale and speed of investment are unusual.

“The US and Australia will invest over $3bn (€2.6bn) in joint critical minerals projects within six months. That’s a somewhat unprecedented speed of capital injection,” she said. Still, Gracelin cautioned that Australia alone won’t be able to meet all of America’s needs and that Washington must keep funding more projects at home and with other friendly ￰19￱ $50 free to trade crypto when you sign up to Bybit now