Washington, D.C. – US President Donald Trump and Australian Prime Minister Anthony Albanese have signed a major critical minerals agreement worth a total of up to $8.5 billion at the White House on Monday.
Both countries will invest more than $3 billion over the next six months to develop mining and processing projects for critical minerals, including rare earth materials.
The said material is essential for making electric vehicles, aircraft engines, and military equipment.
The framework also included the U.S. Export-Import Bank issuing over $2.2 billion in financing for seven mineral projects in Australia to boost production for the defense and high-tech industries among others, unlocking up to $5 billion in total investment.
The investments could tap into mineral deposits worth up to $53 billion.
This agreement comes as China, which holds the world’s largest reserves of rare earth minerals, tightened its export rules over the resources.
Under Beijing’s new policy, exporting rare earths will now be required to apply for strict licenses.
This move angered Washington, accusing Beijing of “holding the world hostage” by limiting global access to these resources.
Australia however is positioning itself as a key alternative supplier of these materials, according to Reuters.
Both nations also pledged to strengthen defense and technology cooperation, and promote economic growth.