US-Australia landmark minerals deal to boost local projects after Anthony Albanese and Donald Trump sign dealStaff WritersAAPTue, 21 October 2025 6:09AMCommentsComments
The Australia-US agreement on critical minerals and rare earths has been hailed as an historical deal that will help counter China’s hold on the market and deliver benefits to at least two Australian projects.
What does the critical minerals deal involve
The US and Australia have now secured a supply chain for critical minerals and rare earths
– Each nation will add “at least” $US1 billion ($A1.5 billion) in investments to support a $US8.5 billion ($A13 billion) pipeline of critical projects over the next six months.
– Those projects will be in Australia and the US.
What Australians projects are involved
Australia has named two priority projects: the Alcoa-Sojitz Gallium Recovery Project in Western Australia and the Arafura Nolans project in the Northern Territory.
The Alcoa project will receive up to $US200 million ($A307 million) in concessional equity finance from the Australian government.
The US will make its own investment – giving it offtake rights – through the US Department of War, which is supporting the building an advance refinery.
This project is set to provide up to 10 per cent of total global supply of gallium, which is used for semiconductor, circuits and solar cells production.
Australia is also making a $US100 million ($A153 million) equity investment in the Arafura Nolans project.
The project is expected to produce five per cent of global rare earths, which are used for smartphones, weapons and renewable energy technologies.
What else is going to happen
– A US-Australia Critical Minerals Supply Security Response Group will be set up.
– It will be led by Australia’s Minister for Resources Madeleine King and US Secretary of Energy Charles Wright.
– The group will identify priority minerals and supply vulnerabilities.
– It will also develop a plan to accelerate delivery of processed minerals.
Source: Australian and US Governments.
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