President Donald Trump and Australian Prime Minister Anthony Albanese signed a deal on Monday that will invest billions of dollars in critical minerals projects.
The US and Australia together will contribute $3 billion to the projects in the next six months. The governments said the total project pipeline is worth $8.5 billion.
As part of the deal, the US Department of Defense will also invest in a gallium refinery in Western Australia capable of producing 100 tonnes per year. Currently, the US imports approximately 21 tons of gallium, representing 100% of domestic consumption. According To the US Geological Survey.
The move comes as China has restricted the export of certain minerals, including rare earth elements, which are vital for the production of electronics and electric motors. For example, gallium is used in microwave circuits and blue and violet LEDs, which can be used to make powerful lasers.
As well as the key minerals deal, Australia has agreed to buy $1.2 billion worth of autonomous underwater vehicles (AUVs) from defense startup Anduril. The White House did not specify whether the purchase agreement is new or part of a previously announced $1.12 billion program under which Anduril will deliver a fleet of Ghost Shark AUVs to the Australian Navy. that was the deal announced on September.
