Washington, Oct 21 (IANS) — The United States and Australia have signed a landmark critical minerals agreement aimed at securing rare earth supply chains and reducing dependence on China, which recently announced new export controls on rare earths, magnets, and related materials.

The pact was formalized during Australian Prime Minister Anthony Albanese’s visit to the White House, where President Donald Trump emphasized the growing strategic partnership between the two nations. “We’ve been working on rare earths and critical minerals for quite a while. In about a year, we’ll have so much critical mineral and rare earths that you won’t know what to do with them—they’ll be worth $2 billion,” Trump said.

Prime Minister Albanese praised the agreement as a major step forward in bilateral cooperation, saying it would elevate U.S.-Australia relations to the “next level.”

During the talks, Trump also reaffirmed his support for the AUKUS defense pact—a trilateral alliance between Australia, the United Kingdom, and the United States—calling it a “deterrent” against China. The AUKUS deal, first signed in 2021, will see Australia acquire U.S.-made nuclear-powered submarines in the 2030s, followed by joint production with the UK in the 2040s.

Trump further expressed optimism about his upcoming meeting with Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation (APEC) Summit in South Korea, suggesting a possible “strong trade deal.” However, he warned of imposing 100 percent tariffs on Chinese goods if Beijing proceeds with its export restrictions on rare earths.

Addressing regional security, Trump dismissed the possibility of a Chinese invasion of Taiwan, asserting that the U.S. remains “the strongest military power in the world by far.”