U.S. President Donald Trump meets with Australian Prime Minister Anthony Albanese in the Cabinet Room of the White House in Washington, DC, on October 20, 2025.
Kevin Lamarque | Reuters
President Donald Trump and Australian Prime Minister Anthony Albanese signed a critical minerals and rare earths agreement on Monday, which Albanese said includes plans for projects worth up to $8.5 billion in total.
“There will be $1 billion in funding from Australia and the United States over the next six months for projects that are immediately available,” Albanese said during a meeting with President Trump at the White House.
But then the White House released a fact sheet announcing that countries would invest more than $3 billion in major mineral projects over the next six months. He explained that the agreement is a “framework.”
The White House also announced that the Export-Import Bank of the United States will issue seven letters of interest to raise more than $2.2 billion, allowing for total investments of up to $5 billion.
CNBC asked the White House and the Australian Prime Minister’s Office to explain the discrepancies between Albanese’s statement and the fact sheet.
The framework agreement between Australia and the US comes as the Trump administration seeks to establish critical mineral and rare earth supply chains that are independent of China.
Rare earths are an important subset of minerals. They are used to make magnets, which are critical inputs in applications such as U.S. weapons platforms, semiconductor manufacturing, robotics, and electric vehicles.
China dominates the global rare earth supply chain, particularly in refining and processing. The United States relies on China for rare earth imports. Australia, a close ally of the United States, is one of the few countries in the world other than China to process rare earths.
Department of Defense investment in Australia
Mr. Albanese said there are three groups of joint projects between the two countries, which will include the following companies: alcohol. The Prime Minister said the US would invest in rare earth processing in Australia. One of the projects is a joint venture between Australia, the US and Japan, he said.
“What we’re trying to do here is take the opportunities that are there,” Albanese told reporters.
The White House says the Department of Defense will invest in a gallium refinery in western Australia with a capacity of 100 tons per year. Alcoa announced in August that it was exploring the feasibility of a gallium project with Japan at one of its alumina refineries in Western Australia.
“About a year from now, there will be so much important minerals and rare earths that we won’t know what to do with them,” Trump told reporters. The president also said the United States is working with other countries to build supply chains that are not dependent on China.
China and US tensions
China announced strict export controls on rare earths earlier this month, pushing China and the United States to the brink of a new trade war. President Trump has threatened to impose 100% tariffs on Chinese goods starting November 1, or sooner, if Beijing does not back down.
“They threatened us with rare earths, they threatened me with tariffs, but they can also threaten us with many other things, including airplanes,” Trump said Monday.
President Trump has confirmed that he will meet with Chinese President Xi Jinping in South Korea later this month. The US president said he would visit China early next year.
“There were presidents in China and other countries who got away with murder,” Trump said. “We’re not going to tolerate that, but we’re going to make a fair deal. I want to be good to China. I really like my relationship with President Xi. We have a great relationship.”
