US, Australia Sign Critical Minerals Pact Amid China’s Rare Earth Export Curbs

President Trump and PM Albanese pledge deeper cooperation on rare earths, defense, and AUKUS alliance to counter China’s growing influence

Washington, Oct 2025 : The United States and Australia have signed a landmark critical minerals agreement, marking a significant step in strengthening supply chains for rare earth elements and reducing dependence on China. The signing took place at the White House on Monday, during Australian Prime Minister Anthony Albanese’s official visit hosted by US President Donald Trump.

The pact comes just days after China announced new export controls on rare earth minerals, magnets, and other essential components used in high-tech manufacturing, electric vehicles, and defense industries. The move has heightened global concerns over supply security and strategic competition in critical materials.

Speaking after the signing, President Trump said the partnership will ensure both nations’ long-term access to vital resources.
“We work together very much on rare earths, critical minerals, and lots of other things, and we’ve had a very good relationship,” Trump said. “In about a year from now, we’ll have so much critical mineral and rare earths that you won’t know what to do with them. They’ll be worth $2 billion,” he added.

Prime Minister Albanese praised the agreement, describing it as a “major step forward” that will elevate the bilateral relationship to the “next level.” The deal is expected to enhance cooperation between US and Australian mining companies, accelerate joint research, and expand the processing of rare earths outside China’s control.

In addition to the minerals deal, Trump reaffirmed his full support for the AUKUS defense alliance, calling it a vital “deterrent against China.” The pact, originally signed during the Biden administration in 2021, had faced uncertainty amid a Pentagon review earlier this year.

“It was made a while ago, and nobody did anything about it. It was going too slowly,” Trump remarked. “We have the best submarines in the world, and we’re building a few more. We’ve worked on this long and hard, and now the process is moving very rapidly and very well.”

Under the AUKUS agreement, the United States will supply at least three nuclear-powered submarines to Australia by the 2030s, followed by a joint program between Australia and the United Kingdom to construct a new generation of nuclear-powered submarines in the 2040s.

Turning to relations with China, Trump expressed optimism about his upcoming meeting with President Xi Jinping on the sidelines of the Asia-Pacific Economic Cooperation (APEC) Summit in South Korea.
“We have a very good trade relationship. I think we’ll end up with a very strong trade deal—one that both of us will be happy with,” he said.

However, Trump also issued a warning, saying the US would impose 100 per cent tariffs on Chinese products from November 1 if Beijing proceeds with its rare earth export restrictions.

Addressing concerns about a potential Chinese invasion of Taiwan, Trump dismissed the possibility, saying, “China doesn’t want to do that. The United States is the strongest military power in the world by far. We have the best equipment and nobody’s going to mess with that.”

He added, “Now, that doesn’t mean Taiwan isn’t the apple of Xi’s eye—it probably is—but I don’t see anything happening.”

The dual focus on critical minerals and defense underscores a renewed strategic alignment between Washington and Canberra, positioning both nations to counter Beijing’s economic and geopolitical leverage in the Indo-Pacific.