President Donald Trump and Australian Prime Minister Anthony Albanese signed an agreement on Monday that will direct billions of dollars into critical minerals projects. The United States and Australia will jointly contribute three billion dollars to these projects over the next six months. The governments stated the total project pipeline is worth eight and a half billion dollars.
As part of the deal, the United States Department of Defense will also invest in a gallium refinery in Western Australia. This refinery will be capable of producing one hundred tons of gallium per year. According to the United States Geological Survey, the United States currently imports approximately twenty-one tons of gallium, which represents one hundred percent of its domestic consumption.
This initiative occurs as China has restricted exports of certain minerals, including rare earth elements. These materials are vital for the production of electronics and electric motors. Gallium, for example, is used in microwave circuits and in blue and violet LEDs, which are used to make powerful lasers.
Alongside the critical minerals agreement, Australia has agreed to purchase one point two billion dollars worth of autonomous underwater vehicles from the defense startup Anduril. The White House did not specify if this purchase is new or part of a previously announced one point one two billion dollar program. That earlier program, announced in September, involves Anduril delivering a fleet of Ghost Shark autonomous underwater vehicles to the Australian Navy.