U.S.-Australia Forge Critical Minerals Pact Amid China Tensions

President Donald Trump and Australian Prime Minister Anthony Albanese signed an agreement to secure rare earths and critical minerals, countering China's global supply hold. The U.S. and Australia plan to invest billions in mining and processing, underpinning the AUKUS submarine deal amidst geopolitical tensions.

In a strategic move to challenge China's dominance over global supply chains, President Donald Trump and Australian Prime Minister Anthony Albanese signed a rare earths agreement on Monday. The pact focuses on ensuring a steady supply of rare earths and critical minerals, vital for technological and defense advancements.

The agreement was a significant highlight during the first-ever White House summit between Trump and Albanese. Additionally, Trump backed the AUKUS strategic nuclear-powered submarine deal with Australia, originally brokered under former President Joe Biden, indicating bipartisan support against Beijing's ambitions in the Indo-Pacific region.

The deal involves both countries investing $1 billion each over the next six months into mining and processing projects. It also includes a minimum price floor for critical minerals, which has long been a demand among Western miners. This collaboration with Australia, rich in rare earth reserves, comes at a time of heightened trade tensions with China.

(With inputs from agencies.)