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 total value of the project pipeline is eight and a half billion dollars, according to the governments.
As part of this 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. Currently, the United States imports approximately twenty-one tons of gallium, which accounts for one hundred percent of its domestic consumption, according to the United States Geological Survey.
This move occurs as China has restricted exports of certain minerals, including rare earth elements, that are essential for producing 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. Under that earlier program, Anduril is set to deliver a fleet of Ghost Shark autonomous underwater vehicles to the Australian Navy, a deal which was announced in September.