US, Australia Sign $8.5 Billion Rare Earth Deal To Counter China

Key Facts

Published: October 20, 2025 Location: Washington D.C. / Canberra Source: Statements from U.S. and Australian Governments

• President Donald J. Trump and Prime Minister Anthony Albanese signed an $8.5 billion agreement to boost U.S.–Australia cooperation on rare earths and critical minerals.
• The deal aims to reduce global dependence on China’s supply chains and strengthen secure, sustainable mineral production between the two allies.
• White House adviser Kevin Hassett said Australia will play a key role in protecting the global economy from “rare-earth extortion” by China.
• Analysts say the agreement will deepen U.S.–Australia defense and technology ties while potentially heightening trade tensions with Beijing.

by Stefan J. Bos, Worthy News Chief International Correspondent

WASHINGTON/CANBERRA (Worthy News) – U.S. President Donald J. Trump and Australian Prime Minister Anthony Albanese have confirmed the signing of an $8.5 billion agreement to strengthen cooperation on rare earths and other critical minerals, aiming to reduce global dependence on China’s supply chain dominance.

President Trump said the deal “had been negotiated over a period of four or five months” and represents “a major step toward securing the materials our industries need without relying on China.”

Prime Minister Albanese called it an “$8.5 billion pipeline” that would “take the U.S.–Australia relationship to the next level,” emphasizing that “our nations are working together to build resilient, secure, and sustainable supply chains for the future.”

White House economic adviser Kevin Hassett added that Australia “is going to be very helpful in the effort to make the global economy less risky, less exposed to the kind of rare-earth extortion we’ve seen from the Chinese.”

The agreement underscores Australia’s strategic role in global resource markets and marks a shift in Washington’s efforts to counter Beijing’s influence in critical mineral exports.

Analysts say the deal will deepen U.S.–Australia cooperation on technology and defense while likely increasing trade tensions with China.

Latest Worthy News