President Donald Trump and Australian Prime Minister Anthony Albanese signed a rare earths and critical minerals agreement aimed at securing material supplies amid concerns over China’s control of global supply.The leaders discussed a nuclear-powered submarine deal intended to counter China’s influence in the Indo-Pacific region. The agreement includes a joint investment of $2 billion into mining and processing projects over the next six months.

Trump indicated confidence in the deal, suggesting significant increases in critical mineral production within a year. The U.S. seeks access to rare earths worldwide as tensions with China escalate ahead of an upcoming meeting between Trump and Chinese President Xi Jinping.

Australia holds substantial rare earth reserves, valuable for various technologies, including electric vehicles and military applications. Despite friendly exchanges, Trump had a tense moment regarding past comments made by Australia’s Ambassador Kevin Rudd.

Submarine Agreement Confirmed

Trump expressed support for the AUKUS submarine agreement between the U.S., Australia, and the UK, which involves Australia purchasing U.S. nuclear submarines by 2032. Despite concerns regarding the U.S.’s ability to meet its submarine needs, Trump described the AUKUS deal as moving forward smoothly, emphasizing economic contributions from Australia to U.S. military capabilities.

Concerns over delays in meetings between the two leaders raised anxieties in Australia about defense spending. The rare earths agreement is part of a broader strategy to enhance cooperation and streamline mining operations to ensure supply security, with a focus on countering China’s influence in strategic industries.