On Monday, President Donald Trump and Australian Prime Minister Anthony Albanese finalized a significant agreement aimed at investing billions into critical minerals projects.
Both the United States and Australia will contribute a total of $3 billion to these initiatives over the next six months. The combined value of the entire project pipeline stands at an impressive $8.5 billion, according to government statements.
As part of this collaboration, the U.S. Department of Defense will make an investment in a gallium refinery located in Western Australia, which is designed to produce 100 tons of gallium annually. Currently, the United States relies entirely on imports for its gallium, sourcing approximately 21 tons per year—a figure that fulfills 100% of its domestic needs, as reported by the U.S. Geological Survey.
This strategic move comes in response to recent export restrictions imposed by China on essential minerals, including rare earth elements, which are critical for manufacturing electronics and electric motors. Gallium, for instance, plays a crucial role in microwave circuits and blue and violet LEDs, making it essential for high-performance lasers.
In addition to the critical minerals agreement, Australia has committed to purchasing $1.2 billion worth of autonomous underwater vehicles (AUVs) from the defense startup Anduril. The White House has not clarified if this purchase agreement is a new development or part of an existing $1.12 billion initiative that will see Anduril supply a fleet of Ghost Shark AUVs to the Australian Navy. That previous deal was announced in September.
