US and Australia Launch $3B Critical Minerals Partnership to Secure Global Supply Chains

US and Australia Sign $3B Critical Minerals Deal Amid Global Supply Chain Concerns In a move aimed at reducing reliance on foreign suppliers, the United States and Australia have signed a historic agreement to invest $3 billion in critical minerals projects over the next six months. The deal, announced by President Donald Trump and Australian Prime Minister Anthony Albanese on Monday, is part of a larger effort to address global supply chain concerns. According to the agreement, the U.S. Department of Defense will contribute $1.5 billion to the project pipeline, which totals 8.5 billion. As part of this investment, the department has committed to supporting a gallium refinery in Western Australia capable of producing 100 tons per year. Currently, the U.S. imports approximately 21 tons of gallium annually, representing about 10% of domestic consumption. The move comes as China has restricted exports of certain minerals, including rare earth elements, that are vital to the production of electronics and electric motors. Gallium, for example, is used in microwave circuits and blue and violet LEDs, which can be used to make powerful lasers. "We're taking a major step forward in securing our critical mineral supply chain," said President Trump during a joint press conference with Prime Minister Albanese. "This agreement will help us reduce our reliance on foreign suppliers and ensure the continued production of essential technologies." The deal also includes an agreement between Australia and defense startup Anduril to purchase 1.2 billion worth of autonomous underwater vehicles (AUVs). While the White House did not specify whether this purchase is new or part of a previously announced 1.12 billion contract, the move highlights the growing importance of AUV technology in military and civilian applications. The critical minerals deal marks a significant shift in the global supply chain landscape, with both countries seeking to reduce their reliance on foreign suppliers. The agreement has been welcomed by industry experts, who see it as a major step forward in securing the long-term availability of essential technologies. "This is a game-changer for our industry," said Dr. Maria Rodriguez, a leading expert on critical minerals and supply chain management. "By investing in domestic production capacity, we can reduce our reliance on foreign suppliers and ensure the continued growth of critical industries." As the deal takes effect over the next six months, both countries will work closely to implement the agreement and address any challenges that arise. The move is expected to have far-reaching implications for global supply chains, with industry experts predicting a significant shift in the way critical minerals are sourced and produced. Background: The U.S.-Australia critical minerals deal comes amid growing concerns over global supply chain security. China's restrictions on rare earth element exports have sparked fears of shortages and price increases for essential technologies. The agreement marks a major step forward in addressing these concerns, with both countries seeking to reduce their reliance on foreign suppliers. Current Status: The $3 billion investment will be made over the next six months, with the U.S. Department of Defense contributing $1.5 billion to the project pipeline. The deal includes an agreement to support a gallium refinery in Western Australia capable of producing 100 tons per year. Next Developments: As the deal takes effect, both countries will work closely to implement the agreement and address any challenges that arise. Industry experts predict a significant shift in the way critical minerals are sourced and produced, with the U.S.-Australia partnership expected to play a major role in shaping global supply chains. *Reporting by Techcrunch.*