Table of Contents
- The Rare Earth Rush Is On
- What’s in the Trump-Australia Minerals Pact?
- Why Rare Earths Power Everything from Jets to iPhones
- How China Cornered the Market
- Trump’s Global Playbook Beyond Australia
- Submarines, Security, and Strategic Minerals
- What Happens Next?
- Sources
The Rare Earth Rush Is On
In a bold move to break free from China’s stranglehold on critical supply chains, President Trump has sealed a landmark agreement with Australia to secure access to rare earth minerals—essential components for everything from fighter jets to electric vehicles.
The deal, announced Monday, aims to unlock up to $8.5 billion in joint projects and marks a pivotal shift in U.S. foreign policy: turning mineral security into national security.
What’s in the Trump-Australia Minerals Pact?
Under the new arrangement, the U.S. and Australia will jointly invest $3 billion over the next six months into critical mineral projects—with an expected total value of $53 billion in the long term.
Key elements include:
- Construction of a new gallium refinery in Australia (100 tons/year capacity)
- Australian investment in U.S. defense contractors
- Expanded collaboration under the AUKUS security framework
While the agreement is labeled an “action plan” with no legally binding obligations, both leaders hailed it as a strategic breakthrough.
Why Rare Earths Power Everything from Jets to iPhones
Rare earth elements like neodymium, dysprosium, and gallium are not actually rare—but they are difficult to extract and refine. They enable:
- High-performance magnets in EV motors
- Precision guidance systems in missiles
- Miniaturized circuitry in smartphones and satellites
Without secure access, the U.S. risks ceding technological and military advantage to rivals—especially China.
How China Cornered the Market
China currently controls over 80% of global rare earth processing. Earlier this month, Beijing tightened export restrictions, prompting Trump to call the move “sinister and hostile.”
“We’re not going to let any country hold us hostage over minerals we need to defend our nation,” Trump declared.
Trump’s Global Playbook Beyond Australia
Australia is just one piece of a broader strategy. The administration has also:
- Pledged $75 million to develop Ukraine’s mineral reserves
- Explored partnerships in Greenland and Canada
- Funded a railway in Angola to access central African deposits
“Australia is really, really going to be helpful in making the global economy less exposed to rare earth extortion from China,” said Kevin Hassett, Trump’s National Economic Council director.
Submarines, Security, and Strategic Minerals
The minerals deal is tightly linked to defense. Trump reaffirmed U.S. commitment to the AUKUS nuclear submarine pact—critical for Australia as China grows more assertive in the South China Sea.
Just days before the announcement, a Chinese fighter jet released flares near an Australian patrol aircraft—a reminder of rising regional tensions.
What Happens Next?
While Trump predicts the U.S. will be “swimming in rare earths” within a year, experts caution that building refining capacity takes time. The first gallium shipments from Australia aren’t expected until late 2026.
Meanwhile, Trump says he’s still optimistic about striking a broader trade deal with China during his upcoming Asia trip—despite the escalating mineral rivalry.
Sources
The New York Times: Trying to Loosen China’s Grip on Critical Minerals, Trump Turns to Australia
