US and Australia Sign $3 Billion Critical Minerals Deal

US and Australia Collaborate on Critical Minerals and Defense

A significant agreement was formalized on Monday between President Donald Trump and Australian Prime Minister Anthony Albanese, focusing on substantial investment in critical minerals projects.

The collaborative effort will see both the U.S. and Australia jointly allocate $3 billion towards these projects within the coming six months. Government officials have stated that the overall value of the identified project pipeline reaches $8.5 billion.

Investment in Gallium Production

A key component of this agreement involves investment from the U.S. Department of Defense in a gallium refinery located in Western Australia. This facility will have an annual production capacity of 100 tons.

Currently, the United States relies entirely on imports to meet its gallium needs, consuming approximately 21 tons annually, as reported by the U.S. Geological Survey. This represents 100% import dependence.

Geopolitical Context

This strategic move is occurring in response to export restrictions imposed by China on specific minerals, including rare earth elements. These minerals are essential for manufacturing electronics and electric motors.

Gallium itself is a crucial material utilized in various applications, such as microwave circuits and the creation of blue and violet LEDs, which are integral to the production of high-powered lasers.

Australian Defense Procurement

In addition to the critical minerals deal, Australia has committed to purchasing $1.2 billion worth of autonomous underwater vehicles (AUVs) from Anduril, a defense technology startup.

The White House has not clarified whether this procurement represents a new agreement or falls under a previously announced $1.12 billion initiative. This earlier program involves Anduril delivering a fleet of Ghost Shark AUVs to the Australian Navy, an announcement made in September.

The Ghost Shark AUVs are designed for long-range, autonomous underwater missions.

• The US and Australia are investing $3 billion in critical minerals.
• The total project pipeline is valued at $8.5 billion.
• A gallium refinery will be built in Western Australia.
• Australia will purchase $1.2 billion in AUVs from Anduril.