Washington, October 21, 2025 — The Europe Today: US President Donald Trump and Australian Prime Minister Anthony Albanese on Monday signed a landmark $8.5 billion critical minerals agreement at the White House, marking a major step in efforts to secure global supply chains for rare earth elements as China tightens export restrictions.
The deal, described by both leaders as a “historic partnership,” aims to leverage Australia’s vast reserves of rare earths and critical minerals essential for modern technologies, from electric vehicles and renewable energy systems to advanced defense applications.
“This agreement on critical minerals and rare earths is taking the US–Australia relationship to the next level,” said Prime Minister Albanese, highlighting the pact as a deepening of economic and strategic cooperation between the two allies.
President Trump, whose administration has been working for months to finalize the agreement, said the deal would reduce global dependence on Chinese supply chains. “This is a win for both our countries — and for the free world,” he said, according to media reports.
The announcement follows Beijing’s recent decision to require foreign companies to obtain government approval for exporting magnets containing even trace amounts of Chinese-origin rare-earth materials or technology. Washington views the move as an attempt by China to assert greater control over critical sectors of the global economy.
Kevin Hassett, Director of the White House National Economic Council, said earlier in the day that Australia’s mining capacity would play a “crucial role” in reducing risks in the global economy. “Australia is really going to be helpful in making the global economy less exposed to the kind of rare earth extortion we’re seeing from China,” he told reporters.
Hassett praised Australia’s world-class mining and refining capabilities, calling it “one of the best mining economies in the world” and a natural partner for the United States in critical mineral cooperation.
Prime Minister Albanese was accompanied by senior Australian ministers responsible for resources, industry, and science, underscoring the strategic importance of the visit. Australia possesses dozens of critical minerals highly sought after by the US, including lithium, cobalt, and rare-earth elements vital to clean energy and defense technologies.
The meeting at the White House also covered broader strategic issues, including the AUKUS security pact among Australia, the US, and the UK, originally signed under former President Joe Biden. The Trump administration has yet to confirm whether it plans to maintain the pact, with the Pentagon currently reviewing the agreement.
“Australia and the United States have stood shoulder to shoulder in every major conflict for over a century,” Prime Minister Albanese said ahead of his visit. “I look forward to a positive and constructive meeting with President Trump at the White House.”
The Australian leader, re-elected in May, has emphasized his government’s focus on progressive economic and environmental policies. Following his victory, Albanese noted that his administration had strengthened its parliamentary majority by “choosing to face global challenges the Australian way — looking after each other while building for the future.”
President Trump is expected to meet Chinese President Xi Jinping later this month in South Korea, a summit that could further shape the future of global trade and strategic mineral supply chains.
