US and Australia sign rare earths and critical minerals agreement

Core Points - The US and Australia have formalized a deal to enhance the supply of rare earths and critical minerals in response to China's market dominance [1] - The agreement emphasizes the importance of these materials in advanced technologies for both commercial and defense sectors [2] - A key component of the framework is increased cooperation to secure supplies necessary for manufacturing defense technologies [2] Supply Chain and Financing - The US and Australia will mobilize government and private sector support for capital and operational expenditures, aiming to provide at least $1 billion (A$1.54 billion) in financing for projects within six months [3] - The framework includes streamlining permitting processes for mining and processing operations while ensuring compliance with domestic regulations [4] Trade Practices and Recycling - The agreement aims to protect domestic markets from unfair trade practices and develop standards-based systems for pricing [4] - Collaboration on recycling technologies and managing critical minerals scrap is included to enhance supply chain resilience [4] Governance and Framework - A US-Australia Critical Minerals Supply Security Response Group will be established to identify priority minerals and vulnerabilities in supply chains, led by the US Secretary of Energy and the Australian Minister for Resources [5] - The agreement is a framework for cooperation and does not create legally binding obligations, allowing participants to discontinue involvement with written notice [5]