Trump, agreement of 8.5 billion dollars with Australia for rare earths

On October 20, 2025, U.S. President Donald Trump and Australian Prime Minister Anthony Albanese signed an important agreement regarding rare earths and critical minerals, aimed at ensuring a steady supply of these essential resources. The agreement, negotiated over four or five months, is valued at $8.5 billion and includes contributions of $1 billion from both countries for joint projects in the next six months.

During the meeting, the leaders also discussed the AUKUS agreement, which involves Australia purchasing nuclear submarines. Trump emphasized that the details of the agreement are minor and that both countries are working closely to clarify its aspects. Additionally, Australia will continue its financial contribution to boost the production of American submarines and to maintain the Virginia-class submarines.

In the context of tensions with China, Australia aims to diversify its export markets and reduce dependence on Beijing, which is the world's largest producer of rare earths. Although Australia has close trade relations with China, the Australian government is seeking to strengthen its relationships with its allies, including through the sale of critical minerals. This move comes in response to China's expanding control over rare metal exports, considered a threat to global supply chains.