WASHINGTON, USA: In a landmark move to challenge China’s grip on global mineral supply chains, the United States and Australia have signed a comprehensive $8.5 billion agreement to boost cooperation in the exploration, mining, and processing of critical minerals. The pact aims to strengthen Western resilience in key industries dependent on rare earths — from clean energy to defense technologies.
The agreement was formally announced during a White House meeting between US President Joe Biden and Australian Prime Minister Anthony Albanese, who described the partnership as a “major step toward energy security and industrial independence.” Both nations have pledged an initial $1 billion investment each over the next six months to accelerate joint projects and infrastructure development.
The deal covers not only mineral extraction but also processing and refining facilities, a crucial stage in which China currently holds a near-monopoly. Australia, rich in lithium, nickel, and rare earth deposits, will open its reserves to allied supply chains, while the US will facilitate financing and technology transfer to support these projects.
Officials from both countries emphasized that the pact is part of a broader strategy to de-risk global supply chains and reduce dependence on China, which currently controls over 70% of the world’s rare earth processing. These minerals are vital components in electric vehicles, semiconductors, renewable energy systems, and advanced military equipment.
Experts say the agreement reflects a growing strategic alignment between Washington and Canberra, as both nations position themselves at the forefront of the green industrial revolution. However, they also caution that translating this partnership into tangible results will take time — requiring not just investment, but also sustainable mining practices and environmental safeguards.
This deal marks a pivotal step in the West’s attempt to build an alternative to China’s mineral dominance, signaling a new era of resource diplomacy where economic cooperation and national security are increasingly intertwined.
This story has been reported by PakTribune. All rights reserved.