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US and Australia reach $3B agreement on essential minerals

US and Australia reach $3B agreement on essential minerals

Bitget-RWA2025/10/20 23:57
By:Bitget-RWA

On Monday, President Donald Trump and Australian Prime Minister Anthony Albanese signed a pact that will channel billions of dollars into key mineral initiatives.

Over the coming six months, the United States and Australia will jointly invest $3 billion in these projects. According to both governments, the entire portfolio of projects is valued at $8.5 billion.

As an element of this agreement, the U.S. Department of Defense will fund the construction of a gallium processing plant in Western Australia, which will have the capacity to produce 100 tons annually. The U.S. Geological Survey reports that the United States currently relies entirely on imports for gallium, bringing in about 21 tons each year.

This initiative follows China’s decision to limit the export of certain minerals, such as rare earth elements, which are essential for manufacturing electronics and electric motors. Gallium, for instance, is a key material in microwave circuits and blue and violet LEDs, which are used in high-powered lasers.

In addition to the minerals agreement, Australia will purchase $1.2 billion in autonomous underwater vehicles (AUVs) from defense technology company Anduril. The White House did not clarify if this contract is a new arrangement or part of a previously disclosed $1.12 billion program, under which Anduril is set to supply the Australian Navy with Ghost Shark AUVs. That earlier deal was made public in September.

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