US President Donald Trump signed a deal on rare earth minerals with Australian Prime Minister Anthony Albanese on Monday, pledging that Australia would receive coveted nuclear-powered attack submarines. The leaders met at the White House to focus on defense and critical minerals cooperation, aiming to counter what both countries see as an increasingly assertive China. Albanese said the deal would create $8.5 billion in critical minerals projects in Australia and elevate bilateral relations to the “next level.” Australia’s abundant supply of lithium, cobalt, and manganese essential for semiconductors, defense hardware, electric vehicles, and wind turbines is seen as a way to reduce global dependence on China. China remains the largest refiner of lithium and nickel and dominates processing of other rare earth elements. While Australia cannot challenge this monopoly, it offers a smaller, reliable supply that reduces reliance on China. The US and Australian governments will each invest over $1 billion in the next six months, with the White House citing a combined $3 billion investment. Trump also confirmed progress on the stalled AUKUS submarine deal, ensuring Australia will receive at least three Virginia-class nuclear attack submarines previously signed under President Joe Biden. “The submarines that we’re starting to build for Australia are really moving along,” Trump said. “We’ve worked on this long and hard, and the process is moving very rapidly and very well.” I don’t like you either The AUKUS deal could cost Canberra up to US$235 billion over the next 30 years. It also includes the technology to build its own vessels in the future. Australia also had a major bust-up with France after it canceled a multi-billion-dollar deal to buy a fleet of diesel-powered submarines from Paris and go with the AUKUS program instead. The nuclear-powered vessels lie at the heart of Australia’s strategy of improving its long-range strike capabilities in the Pacific, particularly against China. But the Trump administration said in June it had put AUKUS under review to ensure it aligned with his “America First agenda,” saying it needed to ensure the United States had enough of the subs. Albanese meanwhile managed to ride out an awkward confrontation between Trump and Australia’s ambassador to Washington former prime minister Kevin Rudd. Rudd deleted a series of critical social media posts about Trump following the Republican’s election victory last year. “I don’t like you either. I don’t. And I probably never will,” Trump said to Rudd when a reporter pointed out that the ex-premier was in the room and asked the US president whether he minded the comments. Australians have a mostly unfavorable view of the Trump administration, polling shows, though the country relies on the United States to balance China’s expanding military clout in the Pacific region. China loomed large over both of the key issues in the talks. Australia has touted itself as a key US ally against China’s territorial assertiveness in the Asia-Pacific region, from Taiwan to the South China Sea. On China, Australia announced plans for a strategic reserve of critical minerals to provide to “key partners” such as Washington to help relax Beijing’s chokehold. Trump this month accused China of pressuring trade partners with new rare export curbs and threatened 100-percent tariffs in response.
US-Australia rare earths agreement signed, Trump promises submarines
