A landmark bilateral agreement has been signed between US President Donald Trump and Prime Minister Anthony Albanese on the supply of critical minerals and rare earths.
The framework will see a joint investment of $US2 billion over the next six months into different projects across Australia – an even split between Australia and the US.
The total package of investment will support a $US8.5 billion pipeline of critical minerals projects in Australia and the US.
Two projects to support the international trade agreement includes Alcoa and Sojitz’s gallium recovery project in Western Australia and Arafura’s Nolans project in the Northern Territory.
The former, a trilateral project between Japan, the US and Australia, is said to provide up to 10 per cent of total global gallium supply and will strengthen Australia’s collective economic security.
The latter is set to produce five per cent of total rare earths globally once operational, with a $US100 million equity investment in the project being announced.
“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,” Prime Minister Anthony Albanese said.
“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.”
Despite the historic deal being agreed, there are reservations that more needs to be done to assist in the facilitation of international exports.
“Without investment in refineries and magnet production in allied countries, Australian miners will continue to either sell into or be outcompeted by Chinese domestic industry,” economic geographer at the University of Sydney’s School of Geosciences, Dr Lian Sinclair, said in a statement.
“Apart from Australian rare earths mining company Lynas, which sells into the Japanese market, miners are struggling to find potential international buyers.”
The agreement, the Prime Minister said, represents a significant new chapter in the formal alliance between Australia and the US spanning over 70 years.