International Trade Agreement

United States President Donald Trump and Australian Prime Minister Anthony Albanese have signed an agreement concerning rare earth and critical minerals. This development follows increased global supply control measures by China.

The agreement was signed on Monday, Oct 20, 2025, at the White House. The discussions between the two leaders included topics such as trade, submarines, and military equipment.

Investment and Pricing Details

As part of the agreement, both countries will invest $1 billion each over the next six months in mining and processing projects. The agreement also establishes a minimum price floor for critical minerals, addressing long-standing requests from Western miners.

Australia’s reserves for rare earths are significant, although China holds the largest reserves globally, as per the US Geological Survey data.

Submarine Agreement and AUKUS Partnership

The meeting also covered discussions on a $239.4 billion agreement from 2023 to purchase US nuclear-powered submarines by 2032, followed by the development of a new submarine class with the United Kingdom. US Navy Secretary John Phelan noted improvements in the framework agreement between the US, Australia, and the UK.

Australian officials have assured the continuation of these projects, with Defence Minister Richard Marles indicating awareness of the conclusion of the ongoing review.

China’s Rare Earth Export Controls

Australian officials highlighted Canberra’s commitment under the AUKUS partnership, including a $2 billion contribution to US submarine shipyards this year, and plans to maintain US Virginia-class submarines from 2027 at its Indian Ocean naval base.

The delay in a formal meeting between Trump and Albanese since Trump’s office tenure began caused some concerns in Australia, particularly as the Pentagon pushes for increased Australian defense spending. The leaders had a brief encounter at the United Nations General Assembly in New York last month.

Australia has shown willingness to sell shares in its strategic reserve of critical minerals to allies, including the United Kingdom, as Western countries seek to reduce dependence on Chinese rare earths and minor metals. Recent expansion of China’s rare earth export controls has been criticized by top US officials as a threat to global supply chains. Australia is negotiating preferential access to its strategic reserve in US trade talks initiated in April.