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U.S. and Australia sign $3B critical minerals deal
The U.S. and Australia signed a $3B deal to fund critical minerals projects, including a gallium refinery in Western Australia. This partnership, aimed at reducing dependency on Chinese mineral exports, will see the U.S. invest in a total project pipeline worth $8.5 billion, while Australia also purchases $1.2B in autonomous underwater vehicles from Anduril.
Key points
- The U.S. and Australia jointly invest $3 billion in critical minerals projects.
- The total project pipeline is valued at $8.5 billion.
- The U.S. Department of Defense will fund a gallium refinery in Western Australia with a production capacity of 100 tons per year.
- Currently, the U.S. imports all of its gallium, around 21 tons annually.
- The deal aims to counter China's restrictions on exports of critical minerals vital for electronics.
- Australia agreed to purchase $1.2 billion worth of AUVs from Anduril, with potential ties to a previous program.
Why it matters
- The deal highlights ongoing efforts by nations to secure supply chains for critical minerals amid geopolitical tensions.
- The move reflects a broader trend in 2025 towards increased investment in domestic production of strategic materials to reduce reliance on foreign sources, particularly China.
- This agreement fits into the wider narrative of defense collaboration and technology transfer between allied nations.
This landmark agreement between the U.S. and Australia represents a key strategic initiative to bolster resource security and defense capabilities while responding to global supply chain vulnerabilities.