Trump, Albanese Ink $8.5 Billion Critical Minerals Pact To Curb China’s Rare Earth Dominance

In a move aimed at reducing global dependence on China for rare earth materials, US President Donald Trump and Australian Prime Minister Anthony Albanese on Monday (20 October) signed an $8.5 billion agreement at the White House to boost cooperation on critical minerals, according to AP.

The deal, negotiated over several months, marks a deepening of strategic and economic ties between the two allies.

“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,” said Trump, describing the agreement as a major milestone for US industry. “They’ll be worth $2.”

Albanese hailed the pact, saying it takes the US-Australia relationship “to the next level.”

The agreement comes amid growing global concerns over China’s tightening grip on rare earth exports.

Earlier this month, Beijing announced that foreign companies must now obtain government approval to export magnets containing trace rare-earth materials sourced from China or produced with its technology.

Washington has warned that the move could allow Beijing to exert disproportionate control over global tech supply chains.

“Australia is really, really going to be helpful in the effort to take the global economy and make it less risky, less exposed to the kind of rare earth extortion that we’re seeing from the Chinese,” said Kevin Hassett, Director of the White House’s National Economic Council.

Experts say the deal could quickly expand rare earth supplies for the US, though building full-scale independence from China may take decades.

Pini Althaus, CEO of Cove Capital, noted that ensuring fair pricing mechanisms in contracts with Australian miners would be essential to shield against Chinese market manipulation.

Treasury Secretary Scott Bessent added, “China is a command-and-control economy, and we and our allies will neither be commanded nor controlled.”

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