On Monday, Australian Prime Minister Anthony Albanese visited the White House, where he presented opportunities for more affordable access to Australia’s rare earth minerals and extended an invitation for a golf visit. In response, President Donald Trump promised his counterpart that he would not only uphold a nuclear-powered submarine deal initiated during the Biden administration but also expedite its manufacturing to enhance allied naval capabilities in the Pacific.
China’s pervasive influence was a significant backdrop to both agreements and Albanese’s visit overall. During their Cabinet Room meeting, the enduring alliance between Australia and the U.S. appeared strengthened as both nations took steps to address Beijing’s expanding sway in the Pacific and its control over crucial raw materials for emerging technologies.
In front of reporters, Trump and Albanese formalized a minerals agreement aimed at ensuring a stable supply of vital minerals for the U.S. market. A concise outline of the framework, released by the Australian Prime Minister’s office, indicated that both nations would streamline mining and processing permits and commit $1 billion in funding for joint projects.
Albanese stated that the pact, designed to boost investment in the extraction and processing of minerals essential for computer chips, servers, and batteries, would elevate the bilateral relationship. Trump noted that his administration had been developing a minerals agreement “for quite a while.” He quipped, “In approximately a year, we will possess such an abundance of critical minerals and rare earths that you won’t know what to do with them. Their value will be around two dollars.”
Separately, the White House issued its description of the minerals agreement, presenting larger figures. According to the White House framework, the two nations plan to jointly invest $3 billion in critical mineral projects over the next six months. The U.S. Export-Import Bank, a foreign financing agency, aims to provide $2.2 billion in funding to enhance “critical minerals and supply chain security.” Furthermore, the White House indicated that the Pentagon intends to fund the construction of a gallium refinery in Western Australia, noting gallium’s crucial role in advanced missile defense and satellite systems.
Australian leader Albanese had previously expressed uncertainty about whether Trump would uphold the U.S. commitment to the extensive submarine agreement brokered during President Joe Biden’s tenure among Australia, the U.K., and the U.S. However, Trump declared that he is fast-tracking arrangements for Australia to acquire three Virginia-class nuclear-powered attack submarines for deployment in the Pacific within the next ten years. When questioned about expediting the subs’ delivery, Trump responded, “Yes, we are doing that. We are moving them along very, very quickly.”
Secretary of the Navy John Phelan mentioned that the Navy had been evaluating the AUKUS agreement with the intention to “enhance it” and introduce “clarity” to certain aspects. Phelan emphasized the agreement’s significance for the U.S.’s “capacity to project power in the Indo-Pacific.”
The developments between the U.S. and Australia revealed on Monday coincide with Trump’s upcoming meeting with Chinese President Xi Jinping next month at the Asia-Pacific Economic Cooperation summit in South Korea. Trump stated his intention to increase tariffs on Chinese goods to 157% unless Beijing accepts economic concessions from the U.S. He asserted that the U.S. possesses “immense power” through the “power of the tariff.” A considerable portion of American goods incorporate Chinese-made components, and recent tariff hikes have escalated costs for U.S. manufacturers. Trump commented, “If they are unwilling to conduct business with us, China faces significant challenges. I do not wish for them to be in trouble; I want them to prosper.”
Trump extended a warm welcome to Albanese, remarking that it was “a great honor to consider you my friend.” However, he reacted sharply when a reporter pointed out that Australia’s current Ambassador to the U.S., former Prime Minister Kevin Rudd, had previously criticized him. Rudd was present, seated opposite Trump. Rudd interjected, “That was before this role, Mr. President,” likely alluding to his 2020 Twitter posts where he described Trump as “destructive” and accused him of “dragging America and democracy through the mud.” Trump, disinclined to reconcile, stated, “I don’t like you either. And I likely never will.”