US - Australia sign agreement on strategic minerals and rare earths

US President Donald Trump and Australian Prime Minister Anthony Albanese signed an agreement on strategic minerals and rare earths on October 20, which Mr. Albanese said included plans for projects worth up to $8.5 billion.

During a meeting at the White House, Mr Albanese said: “There will be $1 billion contributed from Australia and the US over the next six months for projects that can start immediately.”

However, the White House later released an official statement saying the two countries would invest more than $3 billion in strategic mineral projects over the next six months. The statement described the agreement as a “framework for cooperation.”

The White House also said the US Export-Import Bank will issue seven letters of interest, providing more than $2.2 billion in financing, unlocking a total investment of up to $5 billion.

The framework agreement between Australia and the US was signed in the context of the US seeking to build a supply chain of strategic minerals and rare earths that is not dependent on China.

Rare earths are a group of strategic minerals used to make magnets - key components in US weapons systems, semiconductors, robotics and electric vehicles, among other applications.

China now dominates the global supply chain for rare earths, especially in refining and processing. The US depends on Beijing for rare earth imports. Australia, a close US ally, is one of the few countries other than China with the capacity to process rare earths.

Mr Albanese said there would be three groups of joint projects between the two countries, including companies such as Alcoa. He added that the US would invest in rare earth processing in Australia, including a joint project between Australia, the US and Japan.

The Pentagon will invest in a gallium refinery in Western Australia with a capacity of 100 tons per year, according to the White House. In August, Alcoa announced it was reviewing the feasibility of a gallium project with Japan at its alumina refinery in Western Australia.

“In about a year, we’re going to have so many strategic minerals and rare earths that we won’t know what to do with them,” Trump told reporters. The president also said the US was working with other countries to build a supply chain that doesn’t rely on China.

The rare earth mineral agreement between the US and Australia was signed by the leaders of the two countries at the beginning of the meeting between President Donald Trump and Australian Prime Minister Anthony Albanese at the White House on October 20.

Source: https://vtv.vn/my-australia-ky-thoa-thuan-ve-khoang-san-chien-luoc-va-dat-hiem-100251021101337699.htm