U.S., Australia Sign $3B Critical‑Minerals Pact

On Oct. 20 the United States and Australia signed a critical‑minerals pact committing more than $3 billion over the next six months (at least $1 billion each) to shore up supply chains, set price floors and fund projects. The deal includes EXIM letters of interest totaling over $2.2 billion, is described by the White House as part of an $8.5 billion project pipeline, and includes Pentagon investment and a roughly $1.2 billion Anduril AUV purchase for Australia. It funds projects including a proposed Alcoa‑operated gallium refinery in Western Australia expected to produce about 100 metric tons a year. The pact aims to reduce reliance on China for inputs used in semiconductors, defense systems and EVs, and its timing follows Beijing’s recent tightening of rare‑earth and other mineral export controls and about a 30% drop in China’s shipments to the U.S. in September. Analysts and U.S. officials warn heavy U.S. dependence—roughly 70% of rare‑earth imports—risks higher costs and production slowdowns unless processing capacity is rebuilt or diversified, while some experts say China’s proposed extraterritorial licensing would be difficult to enforce.