Trump signs $8.5 billion minerals deal with Australia

U.S. President Donald Trump and Australian Prime Minister Anthony Albanese signed an $8.5 billion critical minerals deal while meeting at the White House on Monday. Negotiated over several months, the deal involves investments of more than $3 billion from both countries in critical mineral projects over the next six months, according to a White House release. Those investments are expected to recover resources worth $53 billion, the release noted. America will be swimming in critical minerals and rare earth metals this time next year, Trump said. Albanese added that today’s deal will be seen as a significant day in the U.S.-Aussie relationship.

Trump said the pair was discussing trade, submarines, and other military equipment during the Australian prime minister’s visit. Monday’s minerals deal came days after China tightened restrictions on its supply of rare earths, requiring foreign countries to get approval from the Chinese government to export such materials.

What specific U.S.-Australia projects did the White House announce Monday? The Trump administration agreed to construct a refinery in Western Australia capable of processing 100 metric tons of gallium each year, a move aimed at fostering self-reliance in critical mineral processing, according to the White House. Australia agreed to buy $1.2 billion in underwater drones and accept the initial delivery of Apache helicopters for a separate $2.6 billion deal. Australia also planned to invest $2 billion to upgrade its integrated air and missile defense capabilities with help from U.S. defense companies. The U.S. also brokered a joint space project with the Australian Space Agency and agreed to cooperate and jointly invest in artificial intelligence and quantum technology.

Did Trump say anything about China at Monday’s meeting? Trump acknowledged the rare-earth tensions with China while talking with media members, noting that he planned to meet with Chinese President Xi Jinping in the coming weeks. Despite China’s restrictions on rare earths, American tariffs are a more powerful threat to China, Trump asserted. The president said he would like to have a good relationship with China and hoped to convince Xi to end a boycott of American soybeans. The president shrugged off the threat of China invading Taiwan, saying he didn’t envision China invading the island territory while the United States possessed the strongest military in the world. 

Dig deeper: Read my report on another mineral deal Trump brokered with Ukraine earlier this year.