President Donald Trump and Australian Prime Minister Anthony Albanese inked an agreement on Monday that will pump billions of dollars into critical minerals projects.
The U.S. and Australia will together contribute $3 billion to the projects over the next six months. The total project pipeline is worth $8.5 billion, the governments said.
As part of the deal, the U.S. Department of Defense will also invest in a gallium refinery in Western Australia capable of producing 100 tons per year. Currently, the U.S. imports approximately 21 tons of gallium, which represents 100% of domestic consumption, according to the U.S. Geological Survey.Β
The move comes as China has restricted exports of certain minerals, including rare earth elements, that are vital to the production of electronics and electric motors. Gallium, for example, is used in microwave circuits and blue and violet LEDs, which can be used to make powerful lasers.
Alongside the critical 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 deal was announced in September.
