US, Australia Heads of Government sign critical minerals agreement and progress AUKUS

Australian Prime Minister Anthony Albanese and President of the United States Donald Trump have signed a landmark bilateral framework on critical minerals and rare earths at the White House in Washington DC. These commodities are essential for defence and other advanced technologies and the agreement will see an accelerated pipeline of priority projects delivered by and for the two nations.

The United States–Australia Framework for Securing of Supply in the Mining and Processing of Critical Minerals and Rare Earths will deliver a US/Australia secured supply chain for critical minerals and rare earths.

“We’ve agreed today Australia and America are going to make more things together with our historic framework on critical minerals,” said Prime minister Anthony Albanese. “Australia is home to much of the periodic table of critical minerals and rare earth metals that are vital for defence and other advanced technologies.

“Cooperation on critical minerals and rare earth supply chains is testament to the trusted partnership between Australia and the United States as strategic defence allies.

The two men also announced the US and Australia will take measures to each provide at least US$1 billion ($1.54 billion) in investment towards a US$8.5 billion ($13 billion) pipeline of priority critical minerals projects in Australia and the United States over the next six months.

Two of those priority projects have already been announced by the Australian Government.

The first is the Alcoa-Sojitz Gallium Recovery Project in Wagerup, Western Australia. Australia has announced up to US$200 million ($308 million) in concessional equity finance for the project, which includes a right of offtake for the Australian Government. The United States Government is also making an equity investment with a right of offtake.

This project will provide up to 10 per cent of total global gallium supply. Gallium is an essential input for defence and semiconductor manufacturing. This is a trilateral project with Japan, the United States and Australia, which the Prime Minister’s Office says will strengthen the three nations’ collective economic security. Japan has already provided 50 percent of the project costs to date.

The second project is the Arafura Nolans project in the Northern Territory. Australia has announced a US$100 million ($154 million) equity investment in the project. Once operational, this project will produce 5 per cent of global rare earths.

This historic framework will assist both countries in achieving resilience and security of critical minerals and rare earths supply chains, including mining, separation, and processing, through use of economic policy tools and coordinated investment, the Prime Minister’s Office says.

A US-Australia Critical Minerals Supply Security Response Group will be established under the leadership of the US Secretary of Energy and the Australian Minister for Resources to identify priority minerals and supply vulnerabilities and to develop a coordinated plan to accelerate delivery of processed minerals under this Framework.

The online publication Breaking Defense also reported the two men’s media conference at the White House, including remarks by US Navy Secretary John Phelan who said the goal of the ongoing AUKUS review, which many feared could lead to the RAN not getting US Virginia-class submarines, was to make the original deal ‘better’ and clear up some of the ‘ambiguity’.

“It should be a win-win for everybody,” said Phelan