$5 billion committed to 10 projects six months after signing
The landmark US-Australia critical minerals agreement pledged more than $5 billion in financing for 10 major projects, six months after Donald Trump and Anthony Albanese signed the deal.
The prime minister and the U.S. president reached the deal last October after months of talks, as China dominates many of the world’s most sought-after critical minerals and rare earth metals used in everything from electric vehicle batteries to advanced weapons systems.
At the time, Trump predicted that within a year “we will have so many critical minerals and rare earths that you won’t know what to do with them,” while Albanese hailed the project as a win for both countries.
Both countries had agreed to commit up to $1.5 billion over six months to specific projects; The $5 billion pledged so far exceeds the original commitment.
Resources Secretary Madeleine King and U.S. Interior Secretary Doug Burgum recently met in Tokyo to discuss the top 10 projects, as well as two projects under construction.
“Australia is taking global leadership to diversify key supply chains for critical minerals and rare earths that are vital to supporting economic and national security for Australia and our trading partners,” King said.
“Australia and the United States are meeting commitments made at the White House with priority projects supporting the production of rare earth elements and critical minerals such as nickel, cobalt, gallium, magnesium, vanadium and graphite in Australia.
“These materials are vital to the defense systems, advanced manufacturing and clean energy technologies that will help Australia and the world meet its net zero commitments.”
Currently announced projects include: Astron’s Donald Rare Earth Project, LaTrobe Magnesium project and VHM Goschen Rare Earth and Mineral Sands Project, all located in Victoria; RZ Resources’ Copi Rare Earth Project in NSW; Arafura’s Nolans Project in the NT; Graphinex’s Esmerelda graphite mine and EQ Resources’ Mt Carbine Tungsten Project, both in Queensland; and three projects in Western Australia – the Alcoa gallium recovery project, the Northern Minerals heavy rare earth project and the Global Advanced Metals project.
At least two more WA-based projects – Tronox Holdings’ rare earth refinery project and Ardea Resources’ Kalgoorlie Nickel Project – are set to secure around $1 billion each, with letters of support signed by King and Burgum.
This opens the door for Export Finance Australia and the US Export-Import Bank to provide the same financial support to these two projects as they did to the first 10 projects.
Trade Minister Don Farrell said the projects were a valuable economic opportunity for Australia at a time when demand for rare earths was increasing.
“Australia has abundant critical mineral and rare earth deposits, well-established resources and energy supply chains, and expertise in extracting and processing these minerals,” Farrell said.
When the deal was first announced, China’s state-owned Global Times He hit back and said he “cannot shake China’s dominant status” in the rare earth supply chain because of its superiority in refining critical minerals.
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James Massola is the chief political commentator. He was previously national affairs editor and Southeast Asia correspondent. He won the Quill and Kennedy awards and was a Walkley finalist. Connect securely to Signal @jamesmassola.01Connect with: X or email.
