Core Minerals to Receive a Joint Investment of 4.2 Trillion Won
Negotiations with Countries Beyond Australia, Such as Vietnam
Trump Says “Large Rare Earth Reserves in a Year”
Australia to Purchase Billions Worth of Weapons
[Herald Economy = Reporter Kim Soo-han] On the 20th (local time), U.S. President Donald Trump announced a plan to strengthen cooperation with Australia on rare earth elements and core minerals in response to China’s increased control over rare earth exports.
China, the world’s largest exporter of rare earths, is using these exports as leverage in trade negotiations with the U.S., prompting a move to diversify supply chains by bolstering ties with resource-rich Australia.
During a summit at the White House with Australian Prime Minister Anthony Albanese, President Trump jointly signed the ‘U.S.-Australia Framework for Securing Stable Supply Chains for Core Minerals and Rare Earths.’
In the agreement, the two countries stated, “We will strengthen joint cooperation to accelerate stable supply of core minerals and rare earths necessary to support our defense and advanced technology manufacturing base.”
The agreement also includes mobilizing government and private sector funds from both countries through guarantees, loans, equities, and regulatory easing to finance capital and operating costs needed for core mineral and rare earth mining and processing projects.
According to the White House, over the next six months, the two governments plan to jointly invest more than $3 billion (approximately 4.2 trillion won) in core mineral projects.
The value of resources that can be recovered through these projects is estimated at $53 billion (approximately 75 trillion won), according to the White House.
The U.S. Export-Import Bank (EXIM) plans to issue seven letters of intent for financial support totaling over $2.2 billion, aiming to facilitate total investments amounting to $5 billion.
The U.S. Department of Defense plans to invest in the construction of a gallium refinery with an annual capacity of 100 metric tonnes in Western Australia, as explained by the White House.
Rare earths and core minerals are crucial components used in various electronic devices, including automobiles, semiconductors, and laptops.
On October 9, China expanded its control targets on rare earth exports from seven to twelve categories, and also included products manufactured using Chinese rare earths and related technologies abroad, effective December 1.
President Trump criticized this move harshly, warning that additional tariffs of 100% would be imposed on Chinese products starting November 1, should China maintain its current stance.
As conflicts continue to spread beyond rare earths to soybeans and shipbuilding, both sides are engaged in working-level talks to find common ground.
President Trump has also been insisting daily that he will meet with Chinese President Xi Jinping in Korea at the end of the month for discussions.
Meanwhile, the announcement that the U.S. will strengthen rare earth cooperation with Australia, the world’s fourth-largest producer of rare earths, is seen as an effort to weaken China’s bargaining power, which has been using rare earth export controls as leverage against the U.S.
The U.S. is also strengthening cooperation with other countries, such as Vietnam, which have abundant rare earth reserves.
President Trump mentioned before signing the agreement that “negotiations have been ongoing for approximately four to five months,” emphasizing that the agreement with Australia had been prepared even before China announced its strengthened rare earth export controls this month.
He also added, “About a year from now, we’ll have so many core minerals and rare earths that we won’t know what to do with them. By then, their value will be about 2 dollars.”
Regarding the U.S.-China trade negotiation outlook, Trump expressed, “I am likely to conclude a very fair agreement with President Xi,” anticipating that “both sides will be satisfied.”
On the same day, the White House announced that Australia agreed to purchase $1.2 billion worth of unmanned submarines from U.S. defense company Anduril and take delivery of the first batch of Apache helicopters, valued at $2.6 billion.
According to the White House, since February this year, the Australian government has contributed $1 billion to the U.S. submarine industry for expansion and modernization, with plans for an additional $1 billion by the end of the year.
The Australian government also plans to invest $2 billion in U.S. defense companies for the establishment of an integrated air and missile defense system.