US, Australia strike $3B critical minerals deal to counter China
Washington and Canberra signed an agreement on Tuesday to invest $3 billion in mining projects as Beijing restricts access to strategic metals. The partnership targets lithium, cobalt, and rare earth elements used in batteries, defense systems, and industrial magnets.
Australia ranks among the top five global producers of key minerals but ships most raw materials to Chinese refineries for processing. Beijing controls more than 90 percent of rare earth processing and has blocked exports of refining technology to competitors.
The deal aims to reduce American dependence on Chinese supply chains amid trade tensions between the two powers. Australian company Lynas operates the only major rare earth separation facility outside China and previously secured a $258 million contract to build a Texas refinery.
Canberra forced Chinese investors to divest from Northern Minerals last year over national security concerns. Officials warn that foreign governments increasingly target Australian mining firms to gain commercial and military advantages.
