$5 billion committed to 10 projects six months after signing

A landmark United States-Australia critical minerals deal has already delivered more than $5 billion in funding commitments across 10 major projects, six months after Donald Trump and Anthony Albanese signed the agreement.

The prime minister and the US president struck the deal last October after months of negotiations against a backdrop of China’s having a stranglehold on many of the world’s most sought-after critical minerals and rare earth metals, which are used in everything from electric vehicle batteries to advanced weapons systems.

At the time, Trump predicted that in a year’s time, “we’ll have so much critical mineral and rare earths that you won’t know what to do with them” while Albanese hailed the project as a win for both countries.

Both countries had agreed to commit up to $1.5 billion within six months to specific projects; the $5 billion committed so far has exceeded the initial pledge.

Resources Minister Madeleine King and US Interior Secretary Doug Burgum recently met in Tokyo and discussed the 10 initial projects, and also discussed two further projects in the pipeline.

“Australia is taking a global lead to diversify crucial supply chains for critical minerals and rare earths, which are vital to support economic and national security for Australia and our trading partners,” King said.

“Australia and the US are delivering on the commitments made in the White House, with priority projects in Australia that support production of rare earths and critical minerals including nickel, cobalt, gallium, magnesium, vanadium and graphite.

“These materials are crucial to defence systems, advanced manufacturing and clean energy technologies that will help Australia and the world meet net zero commitments.”

The projects that have already been announced are Astron’s Donald Rare Earths Project, the LaTrobe Magnesium project and the VHM Goschen Rare Earth and Mineral Sands Project, all in Victoria; RZ Resources’ Copi Rare Earths Project in NSW; Arafura’s Nolans Project in the NT; Graphinex’s Esmerelda graphite mine and EQ Resources’ Mt Carbine Tungsten Project, both in Queensland; and three projects in Western Australia – an Alcoa gallium recovery project, the Northern Minerals heavy rare earths project and a Global Advanced Metals project.

At least two more WA-based projects – Tronox Holdings’ rare earths refinery project and Ardea Resources’ Kalgoorlie Nickel Project – are also in line to secure close to $1 billion each, with letters of support signed by King and Burgum.

This opens the door to Export Finance Australia and the US Export-Import Bank providing the same financial support to these additional two projects that they have already given to the first 10 projects.

Trade Minister Don Farrell said the projects were a valuable economic opportunity for Australia at a time when demand for rare earths was increasing.

“Australia has abundant deposits of critical minerals and rare earths, well-established resources and energy supply chains, and the expertise to extract and process those minerals,” Farrell said.

When the deal was first announced, China’s state-owned Global Times hit back and said it “cannot shake China’s dominant status” in the supply chain for rare earths because of its pre-eminence in the refining of critical minerals.

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