Trump and Albanese Seal $8.5B Deal to Secure Supply of Critical Minerals and Rare Earths
On 20 October 2025, American President Donald Trump and Australian Prime Minister Anthony Albanese signed a Framework Agreement for Securing the Supply of #CriticalMinerals and #RareEarths in Washington, DC. The Framework was sealed in the context of the retaliatory measure by China to tighten export controls on Rare Earth Elements (#REE) and their derivative products.
US favors financing a company in exchange for a stake in the company and a guaranteed share of the output of the Critical Minerals or Rare Earths. For starters, the investments target ‘shovel-ready’ projects that can plug the supply gap in Rare Earths, so essential to the defense, auto and semiconductor industries.
“We have a pipeline of 8.5 billion dollars of projects ready to go.”
Australia PM Anthony Albanese
“In about a year from now, we’ll have so much critical mineral and rare earth that you won’t know what to do with them.”
US President Donald Trump
As a mining economic powerhouse, Australia is willing to diversify and derisk the global supply chain (#GSC) for #CriticalMinerals, including #RareEarths in particular. The scope of the deal covers the whole value chain from exploration, exploitation, separation, processing, and even recycling.
On the same day, the US Export-Import Bank (USEXIM) also announced that it has issued seven Letters of Interest (LOI) — worth more than USD 2.2 billion — to bolster partnership between US and Australia in the field of Critical Minerals. Specifically, Afrafura Rare Earths, Northern Minerals, Graphiex, La Trobe Magnesium, VHM, RZ Resources, and Sunris Energy Metals received the LOI from USEXIM.
It is also worth highlighting that six of the seven projects are in partnership with Export Finance Australia (EFA). A separate agreement was signed by USEXIM Chairman John Jovanovic and Australia’s Minister for Resources Madeleine King.
The Framework explicitly mentions the mobilization of at least USD one billion within six months to finance projects to build up a stockpile to buffer against supply disruptions. Gracelin Baskaran, Director of the Critical Minerals Security Program at the Center for Strategic and International Studies (CSIS), believes that the investment amount could surpass USD 3 billion within the foreseeable future.
Certain analysts observed that China has employed dumping to bring down prices of Critical Minerals and has forced some mining companies out of business, before scooping them at bargain basement prices in order to build up its dominance. In that regard, the sale and purchase contract will include a ‘price floor’ clause to guard against such market manipulations.
When quizzed about the AUKUS nuclear submarine deal, Trump dispelled any doubt and told reporters that the program is ‘moving along very nicely.’ As a matter of fact, Australia has already started construction work on the sophisticated docks needed to house the vessels. It is worth noting that a submarine requires a substantial amount of #RareEarths to build.
Under the Framework, both sides agreed to establish a US-Australia Critical Minerals Supply Security Response Group. The two countries plan to convene a Mining, Minerals and Metals Investment Ministerial within six months from the signing of this Framework.