Australian Prime Minister Anthony Albanese met US President Donald Trump at the White House on Monday, aiming to secure stronger American support for Australia’s critical minerals sector as China tightens its control over global supply chains.
Trump and Albanese signed an agreement on rare earth minerals.
“Today’s agreement on critical minerals and rare earths is just taking it to the next level, seizing those opportunities, which are before us,” Albanese said.
Australia is rich in rare earth resources that the U.S. is eager to tap, as China imposes tougher export rules on its own critical minerals.
Trump said the agreement had been negotiated over several months.
Albanese stressed the close relationship between the two countries, and said the criminal minerals deal was “just taking it to the next level.”
Albanese also discussed the nuclear submarine deal with Trump during their White House meeting.
On Monday, Trump said the AUKUS defence pact, a $239 billion agreement signed in 2023 under former President Joe Biden, under which Australia is to purchase US nuclear-powered submarines in 2032 before jointly developing a new class with the United Kingdom, is “moving very, very quickly.”
“Australia and the United States have stood shoulder-to-shoulder”
Ahead of the talks, Albanese said, “Australia and the United States have stood shoulder-to-shoulder in every major conflict for over a century.”
Officials in Canberra said Australia is contributing $2 billion this year to help expand production at US submarine shipyards. Australia also plans to begin maintaining Virginia-class submarines for the US Navy at its Indian Ocean base from 2027.
Although the meeting came nearly 10 months after Trump took office, Australian officials described the relationship as steady. The two leaders had briefly met on the sidelines of the UN General Assembly in New York last month.
“The most important thing is a cooperative, professional relationship”
Michael Fullilove, executive director of the Lowy Institute in Sydney, told Reuters that “the most important thing is for Mr Albanese to establish a cooperative, professional and hopefully warm relationship with the president.” He added that the main issues between the two countries “are not terribly serious.”
Australia offers allies shares in rare earth reserves
Australia, one of the world’s largest sources of rare earths and minor metals, has offered to sell shares of its planned strategic reserve to allies such as the United States and Britain. The move is part of efforts by Western governments to reduce reliance on China for essential minerals used in electric vehicles, aircraft engines and military equipment.
Top US officials last week criticised Beijing’s expansion of rare earth export controls, calling it a threat to global supply chains.
“We know American companies desperately need critical minerals”
Australia’s Treasurer Jim Chalmers said after talks in Washington with Trump’s economic adviser Kevin Hassett that Canberra hopes to expand cooperation with Washington while maintaining stable trade ties with China, its largest trading partner.
Chalmers said, “We know that American companies desperately need critical minerals, and Australia is very well placed to service that need.”
Despite a $20 billion Chinese trade boycott on Australian goods between 2020 and 2023, China remains Australia’s top export market, particularly for iron ore and coal. The United States, by contrast, enjoys a trade surplus with Australia and imposes low tariffs on Australian products.
