Washington and Canberra strike $3.5B deal to secure critical minerals

CNN Business reports that the Trump administration is trying to break China’s near-total monopoly on rare earths through a $3.5 billion partnership with Australia. The deal aims to boost mining and refining of critical minerals used in electric vehicles, defense systems, and consumer electronics.

Source CNN

However, experts warn that the U.S. is years behind China, which currently controls over 90% of the world’s refined rare earth output. Beijing’s well-established supply chains and processing capacity give it a decisive advantage that new Western projects will struggle to match quickly.

Analysts conclude that while the U.S.-Australia initiative is a strategic move, true mineral independence will take at least a decade. Until then, Washington remains reliant on Chinese supply chains — a vulnerability that has turned rare earths into a central weapon in the economic rivalry between the two powers.